This Week's D.C. Deal Sheet
Tysons’ first all-affordable development, set to total 516 units, received a $39M Freddie Mac loan, finance broker Greystone announced this week.
The Exchange at Spring Hill Station at 1592 Spring Hill Road is being developed by the Arlington Partnership for Affordable Housing. The two 20-story towers have been fully financed from a mix of public and private sources and broke ground in December.
The Freddie Mac Tax-Exempt Loan financing will be used to finance the 265-unit Dominion North.
The total development cost is $355M, according to an APAH spokesperson. Amazon's Housing Equity Fund provided a $55M below-market-rate loan for the development so the two towers could be developed simultaneously.
The development was originally called Dominion Square. It will also feature a community center owned and managed by Fairfax County. The project is expected to deliver in 2027.
“The Exchange at Spring Hill Station marks a significant step forward in our commitment to providing affordable housing options at-scale in an area of incredible opportunity,” APAH President and CEO Carmen Romero said in a release. “Having partners like Greystone is fundamental to securing the critical financing needed to make a project of this magnitude possible.”
LEASES
The Washington Post extended its 306K SF lease in downtown D.C. through 2037, Bisnow first reported. The newspaper is located at Hines’ One Franklin Square near the McPherson Metro station. It moved to the 612K SF office building at the end of 2015, relocating from its longtime home a few blocks away, now the site of Midtown Center. The original lease was to expire in 2031, but the new agreement, filed with the D.C. Recorder of Deeds this week, shows the Post will remain there for at least an additional six years with an option to extend for another five.
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Law firm Williams & Connolly is expanding its footprint at The Wharf by 25K SF, the Washington Business Journal reported. The firm is adding the third floor of 670 Maine Ave. SW, bringing its space to 313K SF, the WBJ reported, citing a lease amendment filed with the D.C. Recorder of Deeds. The deal brings the pair of office buildings to 92% leased, according to CBRE. CBRE’s Amy Bowser and Will Donohue represented the landlord, and CBRE’s Scott Hoffman represented the tenant.
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A Trader Joe’s grocery store is coming to the Chevy Chase Pavilion, Urban Turf reported this week. The grocer filed a liquor license for an 18K SF store in the former H&M on the pavilion’s ground floor. It would be Trader Joe's sixth location in the District.
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Goodwill of Arizona inked a 66K SF lease at Matan Cos.’ five-building industrial park in Frederick, Maryland. The company is planning to take space 4910 Executive Court, bringing the 276K SF spec project to full occupancy. It is part of a five-building complex set to total 550K SF. Three of the five buildings at Center 85 are completed, with a 155K SF building set to begin construction later this year.
SALES
Ernst Equities closed on three D.C. properties last week. The D.C.-based owner and operator purchased an 8K SF Adams Morgan mixed-use property for $3.1M. It also closed on two multifamily buildings in Anacostia totaling 48 units for a combined $4.5M, a deal it won at a distressed auction in December. Ernst Equities was founded in 2015 with three units but has grown rapidly in the past few years, adding over 300 units last year alone, and it now owns, operates and manages over 700.
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Data center developer JK Land Holdings purchased a 108-acre parcel in Loudoun County where the previous owner planned to build 1.1M SF of data centers, the Washington Business Journal reported. The developer purchased the parcel at 19508 Freedom Trail Road, adjacent to Route 7 and east of Belmont Road, from Toll Brothers for $181M.
JK Land Holdings hasn't said if it will pursue the same data center plans Toll Brothers submitted in May. It switched from a plan to build 1,300 apartments and townhomes on the site.
PERSONNEL
CoStar Chief Financial Officer Scott Wheeler is retiring after eight years at the company. The D.C.-based real estate data giant announced the news on its fourth-quarter earnings call on Tuesday. It comes as the company makes a residential push with the U.S. platform it acquired in 2021, Homes.com, and with the UK platform it acquired late last year, OnTheMarket. CEO Andy Florance said the company will begin looking for a replacement immediately, and he will bring on the previous two CFOs to aid in the transition.
