This Week's D.C. Deal Sheet
A 202K SF office building near Union Station has a new owner after being sold at a foreclosure auction on Tuesday.
Eagle Cliff Real Estate Partners purchased Republic Properties’ 660 N. Capitol St. NW from the lender for $30.1M, documents posted in the D.C. Recorder of Deeds show. The lender, an affiliate of Apollo Global Management, initiated foreclosure proceedings in mid-November, Bisnow first reported.
The private investment firm plans to reposition the asset, including undertaking lobby renovations, improvements to the penthouse and rooftop terrace, and initiating a turnkey spec suite program, it announced in a press release. Eagle Cliff retained JLL for leasing and Lincoln Property Co. for management. Construction is scheduled to begin early next year.
“660 North Capitol is exactly the kind of asset that we believe warrants continued investment and will outperform the market as tenants seek the highest quality product in the best locations for their future tenancy,” Eagle Cliff Real Estate Partners co-founder Paul Teti said in the release.
The building, which Republic Properties delivered on spec in 2016, was tied to a $95M loan, Bisnow reported last month. The foreclosure notice in deed records for Tuesday’s auction lists the note balance as $92M.
The office building marks Eagle Cliff’s first acquisition in D.C. The firm launched in mid-2022, founded by Teti and Giorgios Vlamis, who both worked at Normandy Real Estate Partners for over 15 years. After Columbia Property Trust acquired Normandy in 2020, Teti worked at the REIT as an executive vice president, while Vlamis moved on to co-found Senlac Ridge Partners, now rebranded as GreenBarn Investment Group.
SALES
Dulles Town Center, Loudoun County’s largest mall, sold for $46M this week. Virginia Property Investments, led by Srinivas Chavali, acquired the 1.2M SF mall from New York Life Insurance, Commercial Observer first reported, and it bought the adjacent former site of a Sears for $6M.
New York Life Insurance acquired the mall from Lerner Enterprises in 2020 via a deed-in-lieu-of-foreclosure. Its valuation at the time of that deal was $55M, Commercial Observer reported, down from $300M in 2008.
MILESTONES
Officials from D.C.'s Office of the Deputy Mayor for Planning and Economic Development and development and financing partners broke ground on an all-affordable, 18-unit building near Truxton Circle in Northeast D.C. on Tuesday. Cycle House will provide housing for residents making up to 60% of the area median income.
DMPED provided a 99-year ground lease, the Department of Housing and Community Development provided $1.3M in 9% federal and D.C. Low-Income Housing Tax Credits, and DC Green Bank provided $2M of construction financing, according to a news release. The project is expected to deliver in the summer of 2025.
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The Arlington Partnership for Affordable Housing broke ground on a 516-unit affordable community near the Silver Line’s Spring Hill Metro station on Tuesday, FFXnow reported.
The development, recently rebranded as The Exchange at Spring Hill Station, is slated for two 20-story towers with a 33K SF community center. The units will be reserved for residents making between 30% and 70% of the area median income. Bisnow reported on the financing in August, including a $55M below-market-rate loan from the Amazon Housing Equity Fund.
LEASES
After 12 years, Barnes & Noble is coming back to its former Georgetown location. The bookseller inked a lease at 3040 M St. NW for 34K SF across three floors, the Washington Business Journal reported. After Barnes & Noble closed at the prominent Georgetown corner in 2012, a Nike store took its place, but the retailer closed at the beginning of the year.
KLNB’s Adam Miller and Tom Maddux represented Barnes & Noble, and Dochter & Alexander Retail Advisors’ Dave Dochter, Matt Alexander and Laura Bellantoni represented the landlords, Cara Real Estate and Lincoln Property Co.
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The NoMa Business Improvement District is moving its office to Douglas Development’s historic Uline Arena. The BID is taking 6,800 SF at 1140 Third St. NE, a venue that hosted the Beatles’ first U.S. concert in 1964. It plans to move on Jan. 1, joining REI, La Colombe, Red Bear Brewing Co. and coworking operator Spaces.
