This Week's D.C. Deal Sheet
EYA and Pulte are preparing to deliver a new 370-unit townhome and condo community in Rockville, the developers announced this week. The Farmstead District will cover a 20-acre site that was formerly home to a car dealership and farmland before that.
In addition to a commercial-to-residential zoning change, the property had to undergo a jurisdictional land transfer. As it stood, around half of the site was in Rockville, and the rest was in a separate part of Montgomery County. The development had to be annexed fully into the city of Rockville in order to move forward.
“The annexation and conversion of the site from a commercial use to highly amenitized residential neighborhood is not only a win for the city as it looks to increase attainably priced housing, but also for future residents who will have incredible access to walkable amenities and all the benefits the City of Rockville has to offer,” EYA co-founder and Executive Chairman Bob Youngentob said in a release.
Farmstead District will also feature a community center, an outdoor pool, a playground and walking trails. The community is opening for sales this fall, with the first homes set to deliver in 2024.
LEASES
Hyundai Motor Group’s flying taxi development company Supernal signed a 28K SF lease across three stories at 1101 16th St. NW, CoStar reports. The company has 60 employees working from the office, and it expects to add another 20 by year's end. The 102K SF McPherson building is owned in part by Akridge.
Supernal spent more than a year building out the space, according to CoStar. It includes an arboretum and a café, and a 5K SF innovation center is expected to open later this year. Hyundai launched the company in 2020.
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Policy research firm Acumen inked a 41K SF extension of its lease at 440 First St. NW, Commercial Observer reports. The deal represents a 5,700 SF expansion from its previous footprint, which was built up over seven expansions, after it initially signed for 14.7K SF in 2016.
Office Properties Income Trust acquired the 140K SF building, managed by The RMR Group, in 2020 along with a larger portfolio. Cresa’s Mindy Saffer and Jake Ruben represented the tenant, while JLL’s Nathan Beach, Thomas Myers and Meghan Murray represented the owner.
FINANCING
Klein Enterprises secured an $85M loan for the development of Aura, a 379-apartment community in Largo, according to a press release. LGA Capital’s Michael Raphael and Jason Gerstein arranged the financing from Northwestern Mutual at a 6% fixed interest rate.
The $125M development is being constructed by Baltimore County-based Chesapeake Contracting Group, and the first units are expected to deliver in the fourth quarter of 2024. Once completed, Aura will be managed by The Dolben Co.
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The Biden administration announced it is allocating nearly $288M of Inflation Reduction Act funds for the Department of Homeland Security headquarters at St. Elizabeths West. The financing will cover the cost of three of the remaining six new projects left on the campus, which is slated to span 4.1M SF over 176 acres. The government has already poured $2.8B into developing the new headquarters on the former mental health institution’s campus. The latest funds from the IRA come with sustainability requirements for construction material sourcing.
MILESTONES
Local developer and gas station mogul Eyob “Joe” Mamo has plans to turn a 3,700 SF piece of land in Mount Vernon Triangle into a 46K SF hotel, according to plans filed to the D.C. Board of Zoning Adjustment last month. The hotel is allowed by-right, but the developer is looking to get approval for a rooftop bar, which is planned as an extension of a ground-floor restaurant.
The property at 917-912 Sixth St. NW was home to three 19th-century townhomes, some of which may have dated back to the Civil War, the DC Preservation League found. In 2021, the organization attempted to get the townhomes and some adjacent properties owned by Douglas Development Corp. included in the area’s historic district. The protest was denied, and the buildings were demolished. Fillat+ Architecture is on tap to design the property, according to zoning records.
