This Week's D.C. Deal Sheet
St. John Properties has acquired an 82-acre site in Charles County, Maryland, where it plans to develop a 635K SF mixed-use business park on spec.
The Baltimore-based developer announced the purchase this week but didn't disclose the seller or price. Commercial Observer reported the land was purchased for $10M, citing county records. The property in Waldorf sits about 25 miles outside of D.C.
“Charles County is widely recognized for its strategic positioning near the nation’s Capital and an excellent quality of life for residents and businesses alike,” St. John Properties southern Maryland regional partner Andrew M. Roud said in a release. “This high-profile and well-located site allows us to deliver in-demand flex, office, and retail product.
“The current trend is for companies to seek business communities that have immediate access to amenities that are vital to employers and employees, Berry Pointe satisfies this requirement.”
The development along Berry Road, Maryland Route 228, near Crain Highway is planned for single-story commercial office, flex/research and development, and retail space with five pad sites.
The first phase, featuring 110K SF of Flex/R&D and inline retail, is expected to deliver in the spring of 2025. The second phase, planned to include the commercial office buildings as well as the remaining flex/R&D and retail space, will be timed based on the leasing pace.
Stout Real Estate and Development LLC’s Tara Weeks represented the seller, and St. John Properties was represented in-house.
St. John has been a rare example of a company pushing forward with plans for commercial development without pre-leases, announcing in March it planned 26 spec commercial buildings totaling 1M SF.
LEASES
Tysons Galleria signed three new fashion retailers that plan to open at the end of the month, Commercial Observer reported. Dolce & Gabbana and yoga apparel purveyor Alo took 4K SF, and knitwear brand St. John inked for 2,300 SF. The 800K SF upscale shopping center is owned by Brookfield Properties, which dealt directly with the tenants in the transactions.
MILESTONES
An apartment-to-hotel conversion of a historic building near Judiciary Square topped off this week. The Arlo Washington, D.C., project will transform the Harrison, a five-story property completed in 1889, into a 12-story, 445-room hotel under the Arlo brand that is expected to open in August 2024, according to a press release. The redevelopment comes from property owner Quadrum Global, a real estate-focused development, investment management and advisory group. It is Arlo's first property in the region. The brand has locations in Manhattan, Brooklyn, Miami and Chicago. Its D.C. hotel will include a restaurant and bar, a bodega café and lounge, and an interior courtyard.
SALES
A 340-unit affordable housing community in Alexandria was purchased by a Canadian firm for $69M. Spira Equity Partners purchased Lafayette Apartments at 7136 Groveton Gardens Road from Jonathan Rose Cos., which had owned the property since 2016. The transaction marks Spira's foray into the mid-Atlantic market. The Vancouver, British Columbia-based company that works to preserve affordable housing concentrates its properties in California, with a few in Florida and one in Arizona.
***
The University of Maryland acquired a 107K SF office property near College Park’s Discovery District for $35.5M, the Washington Business Journal reported. 1 Physics Ellipse, situated on 24 acres, had been home to The American Center for Physics Inc. since the 1990s when it was constructed. APC will lease back part of its College Park footprint, according to the University of Maryland, while other tenants haven't been identified. Last year, ACP leased a 30K SF meeting space in D.C. at 555 12th St. NW.
***
D.C.-based Bernstein Cos. purchased a Towson apartment and office complex for $44.5M, the Baltimore Business Journal reported. The two-tower property at 300 East Joppa Road was owned by Hampton Plaza Limited Liability Plaza LLC, a subsidiary of Baltimore-based Hackerman Holdings. The towers total 118K SF and have 200 apartment units.
FINANCING
A 244-unit Hyattsville student housing high-rise was refinanced this week for $63M, Commercial Observer reported. Safanad and Vie Management purchased the Vie Towers at 6515 Belcrest Road in 2018 for $69.5M, according to Maryland land records. Värde Partners provided the refinancing funds: a three-year, floating-rate loan with two one-year extension options. JLL's Doug Opalka, Dan Kearns, Jayme Nelson and Owen Claypool brokered the transaction.
