This Week's D.C. Deal Sheet
Skanska signed the first two retailers to the Heming, a multifamily development set to deliver this summer in Tysons' Scotts Run development.
Fitness studio Body Fit Training is set to open this summer, and omakase sushi restaurant Modan is expected to open its doors in spring 2024. The two retailers will be on the ground floor of the 28-story building, which will house 410 residential units and 38K SF of retail.
“We designed this project with the community top-of-mind, and we’re so pleased to have these two retail leases join our neighborhood,” Skanska Executive Vice President Mark Carroll said in a statement.
The Heming is just one element in the 6.5M SF Scotts Run development near the McLean Metro station, which is planned for hotel, office and multifamily and assembled by CityLine Partners.
The Archer, a 178-key hotel developed by Lodgeworks, opened in 2021. KM Hotels is planning to develop another hotel on the site under Hilton’s Canopy and Home2 Suites flags. A 26-story apartment building from Lennar Multifamily Communities is expected to break ground this year, and CityLine Partners has 4M SF reserved for office.
LEASES
The Founding Farmers Group secured a lease for 9,200 SF of ground-floor retail space at the 12.3-acre Oakville Triangle development under construction in Potomac Yard. The Founding Farmers, set to open in the first half of next year, will be the mid-Atlantic group’s eighth restaurant in the region and third in Virginia. It’s the development’s first tenant.
Phase 1 of Oakville Triangle, expected to deliver in the first half of 2024, will boast 37K SF of retail, 571 multifamily units, 84 townhomes, a 103K SF self-storage facility, a 94K SF Inova healthcare facility and a public park.
SALES
A downtown D.C. office building was sold to a developer planning to convert it to an all-affordable residential development. Agorsor Equity purchased the building at 1201 L St. NW for $14M, according to District property records. The 36K SF property, which was occupied and owned by the American Health Care Association since its construction in 1988, will be transformed into 145 affordable units comprising 133K SF.
Agorsor Equity principal Christopher Agorsor told Bisnow the funding is in place to complete the conversion, and he is targeting a 2026 delivery for the project. Cushman & Wakefield’s Aaron Pomerantz, Matthew Garcell, Jill Teitelbaum and George Men represented the seller.
FINANCING
The NRP Group and EJF Capital closed a $61M construction loan led by First National Bank for a 361-unit multifamily development in Hyattsville, according to a release. The five-story project at the corner of Belcrest Road and Toledo Road is expected to deliver in the third quarter of 2025. It is in a qualified opportunity zone, which means investors can get tax breaks in exchange for the aim of fueling economic growth in lower-income areas. EJF Capital is one of the leading opportunity zone fund managers in the region.
MILESTONES
Donohoe Construction topped out its 267-key Marriott AC/Residence Inn in Reston Town Center on Tuesday. The 16-story mixed-use building will contain 34K SF of retail on the first and second floors, which will be managed by BXP, while Donohoe will manage the hotel. Construction began in January, and the property is expected to open in late 2024.
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Stonebridge, the Thomas P. Brown family and the Lenkin Cos. are combining three pieces of land in Bethesda to develop a 225-unit multifamily building. Stonebridge acquired 7749 Old Georgetown Road last summer, while Lenkin has controlled its portion of the assemblage since 2014 and the Brown family has owned its part for over 60 years.
The venture plans to make its initial entitlement submission to the Maryland-National Capital Park and Planning Commission in July. Construction is planned to begin in January 2026. SK&I Architecture will design the project.
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Whole Foods opened its long-promised store at The Parks at Walter Reed this week. The 47K SF organic supermarket is on the ground floor of one of the 66-acre development’s multifamily buildings, The Hartley, which has 323 units.
Hines, Urban Atlantic and Triden Development Group’s 3.1M SF redevelopment of the former medical center complex includes 130K SF of retail and more than 2,200 units of townhouses, condos and apartments, as well as office, ambulatory care, a foreign language immersion charter school, playground, dog park and swimming pool. Retailers joining Whole Foods include Chase Bank, Jinya Ramen Bar, Mezeh Mediterranean Grill, The Charmery ice cream shop and Nailsaloon.
