This Week's D.C. Deal Sheet
A historic multifamily property in Fort Totten is open again after a $37.6M revitalization effort by Wesley Housing, a Virginia-based nonprofit developer that bought the property through the Tenant Opportunity to Purchase Act process.
The development team on Thursday held a ribbon-cutting for Hampshire, a two-building, 56-unit, all-affordable community at 5000 and 5040 New Hampshire Ave. NW.
The process began in 2018 when the former property owner gave notice to residents under TOPA that they intended to sell. Through a partnership with the tenants, Wesley Housing acquired the property, and conducted a $37.6M restoration of vacant units and renovation of the entire property.
Financing was provided in part through a bridge loan from D.C’s Local Initiatives Support Corp. Equity, construction and permanent debt came from Truist. The project secured a 9% Low-Income Housing Tax Credit from the D.C. Department of Housing and Community Development, and it received eight housing choice vouchers from the D.C. Housing Authority.
The building, constructed in 1935, was put on the National Register of Historic Places last year. The units are reserved for residents whose income is at or below 30% to 80% of the area median income. Residents were temporarily relocated and are expected to start moving back in by May, and the building will also add new tenants.
“We are thrilled to welcome residents back into their brand-new apartments where they will thrive in their community,” Wesley Housing President and CEO Kamilah McAfee said in a release. “This neighborhood faces strong gentrification pressures and has few affordable rental options, so to be able to preserve affordability for new and existing residents, as well as generations to come, is impactful.”
LEASES
A new children's toy store is coming to King Street in Old Town this fall, from the owner of Red Barn Mercantile and Penny Post, which sit on the same stretch. The 1,300 SF space will be at 1310 King St., part of the 1300 King St. mixed-use development that features 33 multifamily units.
Owner Amy Rutherford, who signed a 10-year-lease for the space, told Bisnow she has felt a need for a toy store in the area since the 2016 closure of the "Why Not?" store.
“There’s a huge hole in the market that nobody’s filled and I’m so grateful that nobody did fill it while I was waiting,” Rutherford told Bisnow. “Every year I was worried that someone else was going to do it.”
Real estate development and investment firm Holladay Corp. and Rappaport brokerage brokered the deal. Rutherford is soliciting the community for name ideas.
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Asian culture-inspired high-end clothing brand FANGYÁN secured a five-year lease for a 1,500 SF shop in Georgetown. It plans to open at 1057 Wisconsin Ave., just south of M Street, in late spring. Retail landlord EastBanc closed the deal, after working with FANGYÁN in its pandemic-era retail incubator 31/M, on M Street in Georgetown. The incubator shuttered in February of last year.
SALES
D.C.-based multifamily developer Gragg Cardona Partners LLC purchased a Georgia Avenue retail property with development potential for just over $10M.
International Progreso Market, Park Laundromat, Nail Lux and Eva Beauty Salon currently occupy the buildings at at 7709-7732 Georgia Ave. NW. The buildings total 12K SF, and the overall site is 27,400 SF. The property has MU-4 zoning, for moderate-density mixed-use development.
MILESTONES
Cushman & Wakefield announced a $10M renovation to a 185K SF office building in Bethesda is complete. Updates to the property at 4800 Hampden Lane include new conference and fitness centers, a secure bike storage facility and an upgraded lobby and facade.
Tenants include EYA LLC, Declaration Partners and the Paley Rothman law firm. Cushman & Wakefield is marketing more than 70K SF of availability in the building, which is owned by the New York-based Anne and Bernard Spitzer Charitable Trust.
