This Week’s D.C. Deal Sheet: Millie's Shopping Center In Spring Valley Sells For $47.5M

The Spring Valley Village shopping center near the Maryland border in D.C. sold for $47.5M in a deal that was recorded Friday morning in deed records. 

PRP Real Estate Management Investment purchased the six-building center anchored by a 48K SF Crate & Barrel from Rosenthal Properties. The center is 98% leased, according to a press release.

The property’s other tenants include restaurant Millie’s, Compass Coffee, Pizza Paradiso, Capital One and Bluestone Lane. Small Door Vet is expected to open in the fall.

Built in 1938, the property at 4851 Massachusetts Ave. NW is listed on the National Register of Historic Places. It was renovated and expanded in 2017, according to the release.

PRP President Paul Dougherty told Bisnow Friday he has a relationship with the center that dates back to childhood when he used to go to Garfinckel's with his parents.

“It’s in my neighborhood, and I’ve wanted to own it for a long time,” he said.

Dougherty said PRP is planning to bring in new tenants and make aesthetic upgrades, including improving the landscaping and parking and repainting the property.

“Aesthetically, we're going to constantly remerchandise the center, thinking about newer and better formats to bring into the center that better reflect the demographics,” he said. 

PRP is looking to add some “higher-end” restaurants, and it is in discussions with a handful of high-end yoga studios, he said. 

Dougherty said the property's Millie's restaurant performs "incredibly well."

“We believe it's just a really terrific asset to add to a portfolio, and we’re really thrilled to be the new caretakers of this historic and very important property in the city,” Dougherty said. 

MILESTONES

Mayor Muriel Bowser on Thursday afternoon joined Rep. Eleanor Holmes Norton, staff from the Office of the Deputy Mayor for Planning and Economic Development and community leaders to cut a ribbon on the latest deliveries to The Parks at Walter Reed. The latest pieces in the massive redevelopment of the historic hospital campus are a retail marketplace anchored by Whole Foods and three multifamily buildings totaling 492 new homes.

“With Walter Reed, we planted the seeds years and decades ago, and now, we are delivering on that vision by creating jobs for our residents, closing amenity gaps, giving more residents walkable access to a grocery store, and bringing much-needed housing to a world-class campus,” Bowser said at the ceremony. 

The Whole Foods is on the ground floor of the 323-unit Hartley building at the center of the retail plaza. JINYA Ramen Bar, The Charmery Ice Cream Shop, Nailsaloon, Mezeh Mediterranean and Chase Bank also signed leases at the building. 

The other two buildings are co-living project Common Clover, which includes 60 units totaling 248 bedrooms, and Kite House, which features over 100 units. Together, the three new residential buildings include 79 affordable units. Two more residential developments, Aspen Square with 50 for-sale townhomes and The Reynard with 345 units, are set to deliver in 2024. 

The Parks at Walter Reed is a joint development effort between Hines, Urban Atlantic and Triden Development. It is expected to total 3.1M SF at completion. 

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A 93-unit affordable senior housing facility broke ground in the Riggs Park neighborhood of Ward 4 Thursday. Bowser joined local officials and community members to begin construction of the Riggs Crossing Senior Residences, the second phase of a project at Riggs Road and South Dakota Avenue NE. Phase I delivered 90 townhomes in 2022. Of the 93 Phase 2 units, 52 will be reserved for residents making up to 30% of the median family income, 41 will be reserved for those making between 30% and 50% MFI, and 10 will be assigned for permanent supportive housing.

The development will include 5K SF of ground-floor retail reserved for “local and unique retailers,” according to the press release. Housing social enterprise Jaydot will provide food, mental health and transportation services for the residents. 

The project received $25M in funding from the D.C. Department of Housing and Community Development, plus funding from the Housing Production Trust Fund, federal Low-Income Housing Tax Credits and D.C. tax credits. The Arlington Partnership for Affordable Housing and EYA are developing the project.

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D.C. broke ground on the transformation of Northeast’s Dave Thomas Circle Wednesday, demolishing the Wendy's at the center of the infamous intersection. The city claimed eminent domain over the property in February 2021.

The plan is to overhaul the roadways at the intersection of Florida Avenue and New York Avenue NE, realigning traffic, adding two-way traffic to both First Street and Florida Avenue, and adding bicycle lanes and three new public park spaces. 

“This day has been a long time coming, but we are finally saying goodbye to the chaotic and dangerous intersection known as Dave Thomas Circle,” Bowser said at the event. “There are so many fantastic things to do and see in the neighborhoods surrounding this intersection, and we want it to be a safer, less frustrating experience for everyone who comes this way."

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Skanska completed a 245K SF addition to VHC Health in Arlington. The $250M Outpatient Pavilion will house physical therapy examination and treatment rooms, radiology and imaging suites, clinics for examinations, six operating rooms and 22K SF of women’s health services space, according to a press release. Skanska began construction on the development at 1851 North George Mason Drive, owned by VHC Health, in 2019.

LEASES

A 15K SF Container Store is coming to Springfield Plaza in McLean next summer. The store will open in the 261K SF shopping center anchored by Trader Joe’s, Big Blue Swim and CVS. A 43K SF Whole Foods is expected to open this fall. Rappaport brokered the deal. 

PERSONNEL 

Eastdil Secured hired Avison Young’s Rob Walters as managing director, Commercial Observer first reported. From the firm's D.C. office, Walters will lead Eastdil's data center and digital infrastructure business, according to a press release. At Avison Young, Walters led the data center practice's investment sales and leasing.