This Week's D.C. Deal Sheet
Durrani Development, a local immigrant-owned development firm, has secured a partnership with Enterprise Community Partners and closed a financing package to build 86 affordable housing units in Ward 8, its largest project to date.
The $47M project at 2483-2491 Alabama Ave. SE, branded as Alabama Avenue Apartments, sits less than a half-mile from the Lidl-anchored Skyland Town Center mixed-use development.
Durrani first applied for the project's rezoning in 2019, and in 2021 it was selected as a recipient for money from D.C.'s Housing Production Trust Fund.
This week, Enterprise announced it selected Durrani as the first partner for its new Let's Build Accelerator program, aimed at providing access to capital for previously marginalized groups, including people of color, who don't have institutional resources.
Together, Durrani and Enterprise secured $23.1M in tax-exempt bonds from the D.C. Housing Finance Agency, the agency announced Thursday. The venture also landed a $12.9M loan from the HPTF and $9.8M in debt from R4 Capital, plus Low-Income Housing Tax Credit equity from R4 Equity.
The four-story project is planned to have 59 units reserved for those making up to 50% of area median income, nine units at 60% AMI and 18 permanent supportive housing units for those making under 30% of AMI.
“Having lived in low-income, all-affordable apartments when I immigrated to the United States, I know the value and importance of providing clean, safe and comfortable housing to individuals and families,” Durrani founder Mustafa Durrani said in a statement. “Partnering with a mentor like Enterprise Community Development, that shares the same vision of providing good housing people can afford, will allow me to further develop quality affordable homes throughout the DC metro area for many years to come.”
SALES
Roadside Development has acquired Silver Spring’s 88-year-old Tastee Diner and an adjacent property for an undisclosed price with plans for a mixed-use development. The developer hasn’t unveiled its full plans for the site, but said it will honor Tastee by incorporating its original dining car into its project.
The owner of the popular diner, Gene Wilkes, said in a statement that he decided to sell the property for personal medical reasons and that he has “full faith” in Roadside’s vision for the site. Community members reminisced about the Silver Spring diner after it was announced Wednesday that it would close for good, The Washington Post reported.
The diner first opened in 1935 and was acquired in 1988 by Wilkes, who moved it from its original location in 2000 to make way for the former Discovery headquarters. The current location at 8601 Cameron St. sits just off Georgia Avenue and a quarter-mile from the Silver Spring Metro station. It has also expanded with locations in Laurel and Bethesda.
“It has been a pleasure to get to know Gene over the last year,” Roadside partner Jeff Edelstein said in a statement. “He has entrusted us with this opportunity and Roadside is honored to be able to breathe new life into the block and continue to grow this dynamic part of Silver Spring’s ever-evolving downtown.”
***
A vacant, 4-acre lot in Alexandria’s Mark Center area sold for $8.3M to an affiliate of Bethesda-based Stewart Investment Partners as a likely development play. The site at 4880 Mark Center Drive, sold by the Institute for Defense Analyses, is zoned for 450K SF of commercial, residential or hotel uses, according to a Savills press release. Savills’ Parker Lange, Art Greenberg and Vernon Knarr represented the seller in the deal, while Savills’ Lindsay Stroud worked with the buyer to arrange financing.
LEASES
Renewable energy company Standard Solar is expanding its Rockville office footprint by 50%, it announced Tuesday. The firm signed an 8,250 SF expansion to bring its space at 530 Gaither Road to almost 25K SF. The recently renovated building, owned by RMR Group, is part of the four-property Redland Corporate Center. Cresa’s Mindy Saffer and Jake Ruben represented the tenant in the deal, while JLL’s Danny Sheridan, Amanda Davis, Bernard McCarthy and Patrick Hall represented the landlord.
Swedish furniture monolith Ikea signed a deal to open a 5K SF, small-format store in Pentagon City, it announced Thursday. It plans to open this summer at Kimco’s Pentagon Centre shopping center at 1201 South Hayes St. The Plan & Order concept allows customers to meet with Ikea representatives and order items for delivery rather than peruse a large showroom like in its typical stores.
***
Political consulting firm Grassroots Analytics signed a lease to move out of a WeWork space into an 8K SF office at 806 Seventh St. NW, Commercial Observer reported. Clarefield Partners represented the tenant in the deal, while MGA’s Michael Goldman represented the landlord, Midwood Investment & Development.
***
Defense contractor Exostar is downsizing its office at Monday Properties' Dulles Metro Center in Herndon. The tenant, which has been there since 2016, signed a new lease for 21,500 SF, down from its previous footprint of 28,500 SF, Cresa announced Thursday. Cresa's Tom Birnbach and Jon Olmstead represented Exostar in the deal.
PERSONNEL
Michael Hickok, co-founder of D.C. architecture firm Hickok Cole, plans to retire at the end of this year, the Washington Business Journal reported. After working in D.C. architecture for 35 years, Hickok five years ago began taking on less project work and focusing on company strategy. The company will now be led by Yolanda Cole, co-founder and senior principal, and it has eight other partners who will take on more responsibilities, Hickok told the WBJ.
***
Stonebridge is bringing on Tracy Vargo as a principal, a rare move for the D.C. development firm whose three existing leaders have each been with it for over 25 years, Stonebridge principal Doug Firstenberg told Bisnow. Vargo comes from Matan Cos., a Frederick-based development firm where he was also a principal. He will remain as a major investor in Matan and hold a seat on its investment committee, the Washington Business Journal reported.
