This Week's D.C. Deal Sheet
JBG Smith has secured $96.5M to refinance a construction loan on its 681-unit mixed-use development in Northeast D.C.'s Eckington neighborhood.
JBG, which developed the Eckington Yards project at 1550 Harry Thomas Way NE and 611 Eckington Place NE, secured financing from Prudential Insurance Company of America, according to documents filed this week with the D.C. Recorder of Deeds.
Another document filed the same day in deed records shows JBG paid back a $94M loan it secured from Bank OZK in January 2019.
JBG Smith declined to comment on the deal.
The Bethesda-based firm in 2021 delivered the complex next to Alethia Tanner Park on the Metropolitan Branch Trail. It had originally partnered with The Boundary Cos., but LCOR purchased the firm’s 50% stake in 2018. Grosvenor Americas purchased the 45-unit condo component in 2020.
The development has 70K SF of retail, which includes the 35K SF D.C. Bouldering Project rock climbing gym, a commercial kitchen from Union Kitchen, flower shop She Loves Me Eckington and performing arts venue Eckington Hall.
LEASES
Three businesses are expanding their downtown office footprints with funding from D.C.’s $10M Vitality Fund. Tax consulting firm Ryan is taking 17K SF at Tishman Speyer’s 2050 M St. NW. Consulting services firm Acumen is taking 41K SF at 440 First St. NW, owned by Office Properties Income Trust. Association management company Kellen is doubling its footprint at the National Press Club, expanding from 15K SF to 32K SF in establishing D.C. as its new global headquarters.
The Vitality Fund is providing Kellen with $150K over three years, a spokesperson told Bisnow. The sizes of the other monetary awards weren't disclosed.
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Electric vehicle charging manufacturer Blink Charging Co. is moving its global headquarters from Miami to Bowie, Maryland, adding a manufacturing facility nearby. The company is taking 15K SF for its new headquarters and building a 30K SF manufacturing facility at St. John Properties’ Melford Town Center mixed-use business community, the Maryland Department of Commerce announced this week. The headquarters lease is at 17301 Melford Blvd., and the manufacturing lease is at 5081 Howerton Way.
The Department of Commerce approved a $1M conditional loan for the project through its Advantage Maryland program, and Prince George’s County plans to provide a $120K conditional loan through its Economic Development Incentive Fund.
FINANCING
American Real Estate Partners has landed $87.9M in construction financing for a 199-unit office-to-residential conversion in Alexandria. Mesa West Capital and Bank OZK are providing financing for AREP’s conversion of 1101 King St., a seven-story, 200K SF property built in 1984, Mesa West Capital announced this week.
Mesa is providing a $26.1M, five-year, interest-only mezzanine loan. Bank OZK is providing a $61.8M first mortgage construction loan. The loans are part of a 67.5% loan-to-cost financing package.
MILESTONES
Lerner Enterprises secured approval to move forward with a major data center project Thursday. The Bethesda-based developer received approval from the Prince George’s County Planning Board for 4.1M SF of industrial development at the former Landover Mall. The site near FedEx Field has been vacant for 17 years and recently lost out to Greenbelt for the FBI’s new headquarters site.
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An $8.8B effort to redevelop Union Station has cleared a long-awaited federal milestone. The Federal Railroad Administration cleared a plan for a full-scale overhaul of the train station that is expected to take 13 years. Changes include delivering a new rail terminal with 19 tracks, creating four new concourses with new retail, adding a 39-slip bus facility and reducing garage parking by 77% while preserving the historic main hall.
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Mayor Muriel Bowser opened an 81-unit all-affordable apartment building in Anacostia last Friday. The Clara, at 2323 Martin Luther King Jr. Ave. SE, was developed by Banneker Ventures and Medina Living Ideas for Family Excellence Community Development Corp., also known as Medina Life.
The property's 11K SF of ground floor retail will house America’s Islamic Heritage Museum, set to open this winter and Sweet Tooth Bakery and Restaurant, expected to open in April. The property will also feature TOIZ, a youth-owned company that provides tenant services, including laundry and vending. Financing for the development came from private and public sources including the D.C. Department of Housing and Community Development, D.C. Housing Finance Agency and Wells Fargo.
PERSONNEL
Feldman Ruel Urban Property Advisors hired Chris Chadwick as a managing director, the founders told Bisnow this week. Chadwick comes to the 4-year-old investment sales firm from Marcus & Millichap, where he spent 18 years, most recently leading a team as first vice president. At Feldman Ruel, Chadwick will help grow the firm’s presence in Virginia and the multifamily sector.
CORRECTION, MARCH 15, 5:45 P.M. ET: A previous version of this story misstated TOIZ’s arrangement in The Clara building. It has been updated.
