This Week’s D.C. Deal Sheet
Swiss banking firm UBS inked a 12-year lease at Skanska’s recently topped-out 334K SF trophy office building in Downtown D.C.
UBS will occupy nearly 24K SF of the 11-story tower, which is branded as 17xM and is set to deliver in the second quarter of 2024. Cushman & Wakefield represented UBS, and CBRE represented Skanska in the deal.
Though the office market recorded historically low leasing activity in the first quarter, trophy buildings like 17xM are driving what momentum there is in the arena. Experts say access to natural light and amenities are high on employers’ priorities as they try to make workplaces as attractive as possible and give employees a reason to commute.
17xM will boast a 7,500 SF rooftop terrace and conference facility, a gym and 13K SF of ground-floor retail. Skanska says the building’s “K-shape” provides 23% more window line. The building is targeting LEED Gold and Fitwel certifications, and it is aiming for a SmartCore certification, the first office building in North America to do so.
Among UBS' new neighbors will be law firm Gibson, Dunn & Crutcher, which signed a 26-year pre-lease for 164K SF in February 2021.
“17xM is a one-of-a-kind project that is reinventing the downtown D.C. office experience through an 'inside out' design that will improve the day-to-day lives of its users,” Skanska Executive Vice President Mark Carroll said in a release.
LEASES
Local brewery Atlas Brew Works signed on to anchor the Bridge District’s first delivery, The Douglass at 632 Howard Road SE in Ward 8. The mixed-use residential building from Redbrick, designed by ZGF Architects, is set to be delivered in Q4 2024 and will house 757 apartments and over 45K SF of retail.
The brewery plans to begin operating in the space by early 2025 as its fourth location in the DMV. It has locations in Ivy City, Navy Yard and another opening in Alexandria this summer.
SALES
An Ashburn data center was acquired for $150M in March, the Washington Business Journal reported this week. GI Partners, a San Francisco-based investment firm, bought the 139K SF center at 43915 Devin Shafron Drive for $150M on March 3, according to property records.
MILESTONES
An Arlington office building from Skanska has topped out at nine stories, the developer announced this week. The 201K SF building at 3901 North Fairfax Drive is targeting LEED Gold, WELL Core V2 Gold and WiredScore Gold certifications. The milestone marked more than 100,000 hours of labor and 1,700 truckloads of concrete.
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A senior affordable housing community at 4550 Wheeler Hills Road in Prince George's County branded the Homes at Oxon Hill began leasing this week. The project from Humphrey Management consists of 163 one- and two-bedroom units, including nine reserved for residents earning no more than 50% of the area median income and 130 reserved for those earning up to 60% of AMI. Residents can move in starting next month.
PERSONNEL
Michael Stevens is stepping down as head of the Capitol Riverfront Business Improvement District after more than 17 years in the role, the Washington Business Journal first reported. Stevens oversaw the massive transformation of the 460-acre neighborhood situated between I-395 and the Anacostia River from before the arrival of Nationals Park as an anchor for the previously industrial area to a heavy tourist and nightlife community with 11,000 residents.
“Approximately two years ago I realized that my professional skills had served the BID well but that it was time for new leadership as the organization was evolving towards more public realm management, community building, and parks management," Stevens said in a release. "I hope my time at the BID has left the Capitol Riverfront neighborhood as an established and vibrant neighborhood and the BID well positioned for the next stage of its operations."
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Hoffman & Associates brought on Mary Beth Avedesian as its senior vice president of development. Avedesian was previously senior vice president of acquisitions and development at B.F. Saul Co. In a press release, Hoffman & Associates said Avedesian will oversee “several major projects across the region,” including a nearly 10-acre mixed-use development in West Falls Church.
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Rappaport hired Angie Trosper as executive director of brokerage. Trosper comes to the firm after five years as first vice president at CBRE, where she represented clients like Starbucks, Chipotle, Jersey Mike's and Eagle Bank.
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Ernie Jarvis is joining Savills as a vice chairman in its D.C. office as he disbands his own brokerage firm, Jarvis Commercial Real Estate, founded in 2016. Throughout his career, Jarvis has been a vocal advocate for diversity, equity and inclusion in CRE and told Bisnow he hopes his new role will enhance his impact.
“I think I demonstrated to myself and the marketplace I could run a successful boutique company," he said in an interview Monday. "But as I look forward to the next chapter of my life, I want to expand my activities nationally and globally.”
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Perseus TDC, the mid-Atlantic arm of Transwestern Development Co., brought on Toby Millman as its regional partner. Millman served as Canadian real estate giant Brookfield’s D.C.-area development head for four years, during which time he oversaw development of The Yards and other major projects.
