This Week's D.C. Deal Sheet
Kaiser Permanente purchased Station Place III, a D.C. office building where it has been a tenant since 2011, from Property Group Partners for $197.8M, one of the city's largest transactions of the year.
The deal, first reported by the Washington Business Journal, was posted in the D.C. Recorder of Deeds Wednesday. Kaiser Permanente occupies 200K SF of the 507K SF property for its Capitol Hill Medical Center.
The building recently lost two big tenants. The American Chemistry Council is relocating its 200 employees to Brookfield Properties and Douglas Development’s 655 New York Ave. NW in Mount Vernon Triangle. And the Securities and Exchange Commission opted not to renew its lease at the building earlier this year, consolidating its employees into PGP’s Station Place I and II as it awaits movement on a planned 1.2M SF headquarters project.
Property Group Partners developed Station Place III in conjunction with its other two Station Place office properties at 100 F St. and 600 Second St. NE. The three buildings near Union Station total 1.6M SF across 5.5 acres. They delivered in 2009 and were designed by Kevin Roche John Dinkeloo and Associates.
SALES
The Longfellow Building at 1201 Connecticut Ave. NW sold to its lender at a foreclosure auction for $21.2M, the Washington Business Journal first reported. Chicago coworking company Expansive owned the 193K SF Dupont property and defaulted on $65.4M in financing from Los Angeles-based BrightSpire Capital Inc. in May, according to the WBJ. BrightSpire has now purchased the 1940s-era property.
In addition to Expansive, the building's tenants include Vox Media, Mission Collaborative LLC, Edison Law Group PLLC and Brooks Brothers. JLL leases the property, and its website shows over 80K SF available.
PERSONNEL
Cushman & Wakefield hired Marcus Goodwin as managing director in its D.C. office, Goodwin and C&W Managing Principal Ryan Miller announced on LinkedIn this week. Goodwin has spent the last three years running his own development firm, Goodwin Cos., and he previously worked at Redbrick LMD, Neighborhood Development Co., Four Points and The JBG Cos. Goodwin also ran for D.C. Council in 2018 and 2020.
FINANCING
Tower Cos. secured $188M to refinance five Silver Spring multifamily properties branded as The Blairs, lender PGIM Real Estate announced in a press release this week. PGIM provided the fixed-rate financing for the properties, totaling 1,396 units, located within Tower Cos.’ master-planned community. The projects were part of a large-scale effort to redevelop 1950s- and '60s-era apartment buildings into a mixed-use development.
MILESTONES
HITT Contracting plans to build itself a new headquarters in Falls Church, the local construction firm announced Wednesday. HITT will be moving from 2900 Fairview Park Drive in Falls Church to 7024 Haycock Road, where it plans to construct a six-story, 270K SF headquarters. The design for the net-zero building will include a 100K SF photovoltaic solar canopy, which will generate all the energy needed for the structure. The relocation will mean more space and better access to mass transit for HITT's 900 local employees, a press release says.
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Enterprise Community Development broke ground on an expansion and renovation to a Silver Spring apartment complex Thursday. It will add 76 units to the 141 existing at Park Montgomery Apartments and Park Montgomery West while preserving the existing housing along the forthcoming Purple Line. The construction was financed by “twinned” Low-Income Housing Tax Credits, according to the release: 9% for the new apartments and 4% for the existing building.
