This Week's D.C. Deal Sheet
Nike has opened its Nike Unite store on the H Street corridor, and it has more locations for the region on the way.
The storefront opened this week at 700 H St. NE and is marketed as a more neighborhood-oriented concept than the brand's flagship stores.
Brokerage firm Dochter & Alexander marketed and owns the property, principal Dave Dochter confirmed to Bisnow. He said the firm owns several assets where it's looking for value-add repositioning opportunities.
The nearly 17K SF property was first built in 1949 and has seen a variety of uses over the years, according to contractor L.F. Jennings. The space underwent a complete building systems overhaul in anticipation of its new tenant's arrival, including through the addition of elevator and stairs connecting the street level to basement level.
The owner received financing for the project from WesBanco Bank, according to a LinkedIn post from WesBanco's Brett Weil.
The athletic apparel brand has previously opened a Nike Unite store in Fairfax and is slated to open one in Silver Spring this year, according to Source of the Spring.
The stores are a strategic pivot for Nike, which said it's focusing on incorporating e-commerce into physical storefronts. It's also not the only move Nike is making in the region, as it's looking to downsize its Georgetown location.
LEASES
The General Services Administration has submitted plans to Congress to maintain a downtown D.C. presence for the FBI. The law enforcement agency currently leases just over 200K SF at the Woodies Building, located at 1025 F St. NW, according to the Washington Business Journal. The GSA is seeking permission to lease up to 214K SF in the same property, owned by Douglas Development, for up to 20 years.
The prospectus comes as lobbying continues for the eventual FBI headquarters location elsewhere in the D.C. region. Both Maryland and Virginia have finalists in competition for the headquarters, which is expected to be announced this year after much delay. The Woodies space would serve as “continued housing” for the agency as its new headquarters is developed, according to the lease prospectus. The FBI’s current lease expires in 2025.
SALES
Bernstein Management expanded its Southwest D.C. holdings last week, acquiring The Valo, a 221-unit multifamily building, according to a press release. The property, located at 222 M St. SW, was developed by CSG Urban Partners, Meadow Partners and Trammell Crow Co. and sold by an affiliate of Trammell Crow for $82M, the Washington Business Journal reported.
The property also includes a 16K SF church and community center. Bernstein has been working to expand its multifamily holdings and earned approval earlier this year to develop a long-planned property near the Waterfront Metro station.
MILESTONES
Mayor Muriel Bowser joined officials Monday to celebrate the grand opening of The Ethel, a permanent supportive housing building in Hill East. The property was developed by Donatelli Development and BlueSkye Development, the team that also developed the adjacent Park Kennedy project. The latter project, a 262-unit development, celebrated its ribbon-cutting in 2020 while officials also broke ground on The Ethel. Both are part of the broader Hill East redevelopment project, which is slated to feature more than 2,000 additional multifamily units through new development.
PERSONNEL
The DowntownDC BID has hired its first vice president of planning and economic development as it works to spearhead efforts to reimagine the central business district’s public spaces. Ella Faulkner was hired for the position after serving as deputy director of administrative services at the D.C. Department of Parks and Recreation. Faulkner will serve as the BID’s primary liaison to the public sector and oversee efforts to revitalize 24 acres of parks, streets and other open spaces.
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KLNB hired three brokers from Lee & Associates to bolster its investment sales team. John Colan and Patrick Scanlon are joining the brokerage as investment sales specialists, and Pierson Kreutzer is joining as a senior vice president. Kreutzer previously worked at KLNB from 2015 to 2019 but left to start Lee’s D.C. office. Colan, who previously worked as an attorney at a boutique sports agency, specializes in investment sales and office tenant representation. Scanlon, formerly a practicing attorney, focused on law firm tenant representation at the start of his career and now specializes in middle market investment and development sales, all per a release from KLNB.
UPDATE, FEB. 20, 2 P.M. ET: Comments from Dave Dochter of Dochter & Alexander have been added.
