This Week's D.C. Deal Sheet
Turnbridge Equities and Manekin secured $275M in construction financing for the first phase of a 184-acre, 3.5M SF business park planned in Prince George’s County.
The Qatar Investment Authority and PCCP provided $110M in joint venture equity, and Apollo Global Management provided $165M in construction financing, Turnbridge announced Thursday.
The development's first phase is planned for five speculative warehouses totaling 1.3M SF across 94 acres. The buildings will be between 160K SF and 360K SF, and the first deliveries are expected in early 2024.
“National Capital Business Park will undoubtedly go down as one of the highest profile and unique industrial development deals capitalized in the unprecedently challenging capital markets environment of 2023,” said Cushman & Wakefield’s John Alascio, whose team represented the developer.
“This project is the perfect case study of the market today — competitive, sophisticated capital stepping up for infill projects and top sponsors," Alascio added.
Along with Alascio, Cushman & Wakefield’s TJ Sullivan, Meredith Donovan and Mitch Rothstein represented the development team. C&W’s Industrial Advisory Group’s Jim Carpenter, Jon Carpenter, Graham Savage and Dawes Milchling also advised the partnership.
Ferguson Enterprises, a plumbing and construction supply distributor, signed a lease for 358K SF for one of the park’s 13 planned buildings in September 2022.
SALES
Newmark facilitated the sale of a 103K SF Capitol Heights distribution facility for $20.4M. 8700 Ritchie Drive was sold from real estate investment and development company The Pinkard Group and global financial company Principal Asset Management to LBA Realty, a real estate investment and management company. The asset has a weighted average lease term of over six years between three tenants: HD Supply, REW Materials and the General Services Administration.
Newmark Executive Managing Director Cris Abramson and Managing Directors Ben McCarty and Nicholas Signor represented the seller.
MILESTONES
Stonebridge announced it is switching up its leasing management team for Avocet, a 22-story Bethesda office tower, from JLL to Transwestern. The 370K SF tower was delivered in early 2022. About 250K SF at the 7373 Wisconsin Ave. property is still available for lease, according to a Transwestern spokesperson. The building's tenants include Long & Foster Real Estate, Global Medical REIT, Generate Capital, AGNC Investment Corp. and Stonebridge’s own headquarters.
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D.C.-founded development firm Hoffman & Associates is expanding to the Richmond, Virginia, and Charlotte, North Carolina, markets on the 30th anniversary of its founding. The firm operates in the mid-Atlantic and Southeast. It was the developer behind Southwest D.C. megaproject The Wharf, its largest development to date. In Richmond, the firm has a $133M, 400K SF mixed-use project slated to deliver in late 2026. In Charlotte, it has two mixed-use residential developments expected to be completed in 2026 and 2027.
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Cantata, a 275-unit, 230K SF mixed-use building in the Mount Vernon Triangle neighborhood, has begun pre-leasing. Quadrangle Development Corp. and The Wilkes Co. developed the 230K SF building at 801 Third St. NW. It has 9,700 SF of ground-floor retail, but the tenant hasn't been announced. Move-ins are expected this summer.
PERSONNEL
Shaun Donovan, secretary of the Department of Housing and Urban Development during the Obama administration, was named CEO and president of Enterprise Community Partners, a national affordable housing nonprofit. Donovan served as head of HUD from the beginning of President Barack Obama’s first term through 2014. He finished out Obama’s second term heading the Office of Management and Budget. Donovan plans to begin his new role Sept. 1.
