This Week's D.C. Deal Sheet
Greystar Real Estate Partners and equity partner Partners Group have broken ground on a 25-story apartment building on the site of an abandoned gas station in Bethesda.
The development is set to deliver 301 units to a major commercial stretch of Wisconsin Avenue a block away from the Bethesda Metro station. The site was cleared in 2019, according to WTOP.
“7340 Wisconsin Ave presents the unique opportunity to transform a forlorn site in the heart of Bethesda into a boutique project befitting of its trophy location, direct access to mass transit, top public schools and exceptional demographics,” Greystar Managing Director of Development John Clarkson said in a statement.
Bethesda-based SK&I Architecture is designing the property, which is set to include a speakeasy, rooftop pool, screening room and coworking spaces, as well as ground-floor retail. About 15% of the residences, or 46 units, will be set aside as Moderately Priced Dwelling Units under Montgomery County guidelines.
The first units are expected to deliver by the fourth quarter of 2025, with the full project set to be completed in early 2026.
The property is across the street from an AC Hotel, half a block from the Hyatt Regency Bethesda and down the street from Bethesda Row.
LEASES
Public relations firm Brand Guild is moving its Georgetown headquarters a few blocks away. The firm signed a five-year lease for nearly 11K SF at 1056 Thomas Jefferson St. NW, it announced this week. The property, owned by Allen-Mitchell & Co., was formerly home to the women-only coworking company The Wing, which folded in 2022. Cushman & Wakefield’s Gwen Dominguez, Reed Miller and Art Santry represented Brand Guild.
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Golden Eagle Group signed two new office tenants to its 3130 Fairview Park Drive building in Falls Church, according to a press release. Defense technology company Areté Associates signed a 65K SF lease, and Chemtrec, which specializes in hazardous material transport, signed for 25K SF.
The new deals bring the eight-story building's 2023 lease-up to over 100K SF, according to the release. Cushman & Wakefield’s Tim Summers, Will Thomas and Chloe Zulick oversee leasing efforts at the property.
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H&M is taking the majority of Forever 21’s former location in Chinatown, the Washington Business Journal reported. The retailer will take 34K SF in Douglas Development Corp.’s Woodward & Lothrop Building at 1025 F St. NW. The new space is next to H&M’s previous location in Chinatown, which shuttered earlier this year. Dochter & Alexander Retail Advisors represented H&M.
MILESTONES
Maryland-based affordable housing developer Green Street Housing broke ground on a 98-unit affordable development in Silver Spring on Monday. The Sligo Apartments is a $55M development, financed through a combination of $28.9M in construction debt, $25.6M in Low-Income Housing Tax Credit equity investment originated by Capital One, and $10.5M in Freddie Mac debt, according to Capital One’s press release.
Capital One's Ed Delany, Green Street Housing's Dave Layfield and Tom Ayd, TM Associates Development's Bob Margolis, Montgomery County Executive Marc Elrich and Montgomery County Council Member Will Jawando attended the groundbreaking.
SALES
Metal manufacturer ZM Sheet Metal purchased a 23-acre, undeveloped site in Winchester, Virginia, with plans to build a 160K SF manufacturing facility. KLNB Senior Vice President Scott Rabin represented ZM Sheet Metal in the purchase and development agreement. The price and seller of the parcel — which doesn't have an official address, according to KLNB — weren't disclosed.
The land at Stonewall Industrial Park on McGhee Road was originally under contract with an undisclosed developer that planned to construct spec industrial buildings for lease, according to the release. But Rabin negotiated the sale, and that developer has been engaged to build ZM’s manufacturing facility.
FINANCING
Hines secured $300M to refinance the office and retail components of CityCenter. JPMorgan Chase provided the refinancing after financing the original components for $430M, a Hines representative confirmed to Bisnow. The loan is backed by the development's two 11-story office buildings totaling 522K SF and 192K SF of retail. The office component is anchored by law firm Covington & Burling LLP, which signed a 420K SF, 20-year lease in 2012. The retail portion is known for its luxury tenants like Chanel, Dior and Louis Vuitton.
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LCOR secured $92M to build the final part of its four-building residential development near North Bethesda Metro station. SMBC provided a four-year, floating-rate loan for the 12-story, 354-unit project, according to JLL, which arranged the loan. The development site sits on 32 acres owned by the Washington Metropolitan Area Transit Authority, which entered into a joint development agreement with LCOR in 2001.
JLL’s financing team was led by Senior Managing Directors Jon Mikula, Jim Cadranell and Jamie Leachman, as well as associate Ryan Carroll.
