This Week's D.C. Deal Sheet
Global infrastructure manager Meridiam inked a 20K SF lease at 1700 Pennsylvania Ave. NW, where it plans to relocate its North American headquarters from New York City, Mayor Muriel Bowser’s office announced Tuesday.
The $20B company, headquartered in Paris, was the third to receive funding from the District’s $10M Vitality Fund as part of its relocation. The fund is designed to support companies in targeted industries for D.C. that are planning to relocate, expand or retain their physical locations and create new jobs in the District.
“This is all part of the comeback of Downtown DC,” Bowser said in a release. “Washington, DC continues to attract global companies like Meridiam that want to be in the nation’s capital and have access to world-class talent.”
The move is projected to create 60 new jobs in the city, according to the release. Akridge owns the Mills Building, which underwent a redevelopment in 2022, adding three floors to the nine-story property.
Data security firm Virtru and business consulting firm Quadrant Strategies have also received Vitality Fund incentives. The three companies are expected to create 275 new jobs, lease 33K SF and invest $6M in their office footprints.
LEASES
American Enterprise Institute signed a 27.6K SF lease at The RMR Group’s 153K SF 11 Dupont Circle NW, the Washington Business Journal reported, citing the tenant's broker, Newmark. The deal is an expansion for the D.C.-based organization, which is headquartered a block away at 1789 Massachusetts Ave. NW.
Newmark’s Brendan Owen, Ed Clark and Max Planning represented RMR, and Cushman & Wakefield’s Mark Wooters and Aaron Pomerantz represented AEI, according to the WBJ.
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The Fairfax County Public Schools pension fund has downsized and moved from Springfield to Falls Church with a 9K SF lease at 3110 Fairview Park. JLL, which represented the organization, announced the lease in a press release Friday. The Educational Employees' Supplementary Retirement System will now be less than 2 miles from the county’s public school headquarters. The release says that by assessing updated space needs, the organization was able to determine that it could create “major office space usage efficiencies.”
JLL Managing Director John Gibb and Vice President Cheryl Russ represented ERFC, and the brokerage firm’s Project Development Services team will facilitate the build-out of the new office.
SALES
Denver-based The Laramar Group purchased Sterling Medical Plaza, a 35K SF multitenant medical office building in Loudoun County, the investment and management firm announced Wednesday. The acquisition was part of The Laramar Medical Properties Fund I, a closed-end medical investment fund investing in markets including Colorado, Texas, Illinois, Minnesota, Florida, Maryland and Virginia.
The sale price wasn't disclosed, but Loudoun County records show the sale was for $7.3M and took place Oct. 13. The property was built in 1986 and renovated in 2021. It is 85% leased, according to a news release.
FINANCING
Prince George's County approved an estimated $33M tax incentive for the massive mixed-use project The Promise in Oxon Hill, the Washington Business Journal reported. At its meeting Tuesday, the county council approved a payment-in-lieu-of-taxes arrangement, also known as a PILOT, in which a developer pays a lower tax amount to a local government instead of paying the full property tax over time.
The Promise is planned for 808K SF of development, including senior living, more than 100 affordable units, a grocer and daycare at 1501 Southern Ave., which sits a quarter-mile from the Green Line’s Southern Avenue Metro station, according to the WBJ.
