This Week's D.C. Deal Sheet
A 76-unit, all-affordable development coming to Ward 7 has secured construction financing, the D.C. Housing Finance Agency announced Thursday.
DCHFA issued $25.9M in tax-exempt bonds, underwrote $21.4M in federal Low-Income Housing Tax Credit equity and provided $4M in D.C. LIHTC equity for the construction of the development, according to a press release. The D.C. Department of Housing and Community Development is also providing a $15.7M loan from the Housing Production Trust Fund, according to the release.
Manna Inc., Mutreja Development, MED Developers and CRP Affordable Housing and Community Development will develop the project, and United Planning Organization will manage the property.
The plans call for a six-story building at 737 50th St. NE, which will serve seniors, grandfamilies, or grandparents raising minors, and people who were previously unhoused. The units will be reserved for those making up to between 30% and 50% of the area median income.
"The need for senior housing in the District is great and continues to grow. DCHFA’s investment in H.R. Crawford Gardens allows us to address this issue as well as the unique needs of grandfamilies," DCHFA CEO Christopher Donald said in a statement. "Living in this community will help to ease the financial burden of grandparents by providing affordable housing as well as creating a supportive environment of peers that are also caring for children."
LEASES
Disability employment nonprofit MVLE renewed and downsized its flex space in Springfield, Virginia, according to a press release from its broker, KLNB. The organization signed a lease for 51K SF, downsizing from 79K SF at Fullerton Square, located at 7400 and 7420 Fullerton Drive. KLNB’s Marc Balamaci and Scott Mendelson represented the tenant. Cambridge Holdings manages and leases the property on behalf of the owner, which was undisclosed.
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A new health computing institute led by two Maryland universities has secured a home in Rockville. The program from the University of Maryland, Baltimore and the University of Maryland, College Park will sublease 27K SF of the American Occupational Therapy Association’s space at 6116 Executive Blvd., the Baltimore Business Journal reported. The University of Maryland Institute for Health Computing will study how artificial intelligence can be used in healthcare. The sublease, which begins next month, is priced at $10.9M for 134 months and includes early termination options.
SALES
Penzance purchased a 240K SF Arlington office building from UBS Realty Investors. The companies didn't release the price, but county records show the building, called Ballston One, sold for $25M. The price tag represents a steep discount to its most recent tax assessment of $63M and the $43M it last sold for in 1997. The property at 4601 North Fairfax Drive is about 60% occupied, a Penzance spokesperson told Bisnow.
JLL’s Matt Nicholson, Andrew Weir, Jim Meisel, Dave Baker, Kevin Byrd and Kameel Omar represented the seller and procured the buyer, the brokerage announced.
MILESTONES
D.C.-born cybersecurity firm Virtru opened its new 17K SF headquarters downtown with a ribbon-cutting ceremony Tuesday. Mayor Muriel Bowser cut the ribbon for Virtru’s new space, taking up the entire fifth floor at 1801 Pennsylvania Ave. NW, for which the company signed a 13-year lease. Virtru secured funding from the city’s $10M Vitality Fund, aimed at helping companies in targeted industries relocate, expand or retain space in the District.
PERSONNEL
Newmark has hired Carolyn Bates as its regional research director for the mid-Atlantic, the company announced in a press release. Bates will be based in D.C., where she will lead a team of researchers covering D.C., Baltimore and Greater Philadelphia, provide insights into economic and real estate trends, oversee statistical data collection and analysis, and drive thought leadership initiatives. Bates was previously an advisory consultant at Avison Young and before that at Bridge Investment Group and JLL, according to her LinkedIn profile.
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BermanCRE, the new brokerage arm of owner Berman Enterprises, has hired Justin Shay to head its mid-Atlantic multifamily team. Shay was previously a senior vice president at Transwestern, where he also worked on multifamily. The new brokerage quietly launched last year in Miami and is expanding to Atlanta and the District, founder Ben Berman told Bisnow this week.
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The District of Columbia Housing Authority has a new leader. Keith Pettigrew, CEO of Alexandria’s housing authority, was unanimously voted in as DCHA’s executive director by its Stabilization and Reform Board of Commissioners Wednesday, The Washington Post reported. Pettigrew, who grew up in D.C. public housing, held multiple senior-level positions at the agency in the early 2000s, according to the Post. He succeeds Brenda Donald, who took charge of the agency in 2021 but departed in July, months ahead of her contract. Pettigrew starts his new role on Nov. 1.
CORRECTION, SEPT. 16, 9:15 A.M. ET: This story has been corrected to clarify that $10M is the total funding for D.C.'s Vitality Fund.
