This Week's D.C. Deal Sheet
Mayor Muriel Bowser cut the ribbon on the latest milestone in her administration’s effort to transform historic Anacostia. MLK Gateway Phase 2, which includes a new headquarters for the D.C. Department of Housing and Community Development, opened its doors Thursday.
The mayor was joined by council members, members of her administration and The Menkiti Group, which developed the 108K SF mixed-use project.
“This intersection is often people’s first touchpoint when they come East of the River, a true gateway into Ward 8,” Bowser said in a statement.
“We wanted it to be an entryway that symbolizes the strength, resilience, creativity, and flavor of Anacostia, while also bringing jobs, opportunity, and investment to the neighborhood,” she added.
In addition to DHCD's 55K SF office, the development at 1909 Martin Luther King Jr. Ave. SE is also the new home of Keller Williams Capital Properties, a brokerage subsidiary of The Menkiti Group. The project is also set to house Black, woman-owned Grounded, a D.C.-based plant subscription service.
The first phase of MLK Gateway, which Menkiti delivered in November 2021, includes 20K SF of offices and 14K SF of retail.
LEASES
The Commodity Futures Trading Commission is moving from its longtime home in the West End to Federal Center Southwest. The federal agency inked a 147K SF lease at Multi-Employer Property Trust’s Patriot Plaza III at 355 E St. SW, the Washington Business Journal reported. The deal is for 10 years with a 10-year option.
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Golden Eagle Group signed Beyer Automotive to a 5K SF lease at 3130 Fairview Park Drive in Falls Church, Virginia. The deal marks the eighth at the building since 2022 and takes the 198K SF property to 85% leased. It comes after the property inked two leases last winter totaling nearly 90K SF. Cushman & Wakefield’s Tim Summers, Will Thomas and Chloe Eyring oversee leasing at the property for the landlord. Potomac Real Estate Partners' Norman Corkhill represented Beyer Automotive.
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Graham Holdings Co. is taking a full floor at Monday Properties’ 1812 N. Moore St. in Rosslyn for its new regional headquarters. The diversified holding company, which sold The Washington Post to Jeff Bezos, inked 24K SF across the full 21st floor of the 35-story tower for 15 years, Monday Properties announced. Graham Holdings is moving just a few blocks from its current Rosslyn home at 1300 17th St. N.
SmithGroup is set to design the new office space, with HITT Contracting overseeing the build-out. JLL’s Scott Panzer, Jay Farmer and Steve Burman represented the tenant, and Monday Properties’ John Wharton and JLL’s Yorke Allen, Robert Veshancey, Herb Mansinne and Lee Brinkman represented the landlord.
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Dunkin' inked its first lease east of the Anacostia River. WC Smith signed the doughnut shop to 1,600 SF with a drive-thru at the Shops at Park Village. Pre-development is slated for early May, and the store is slated to open in late 2024. Rappaport Co. represented the landlord and tenant. Rappaport’s Melissa Webb represented Dunkin'.
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SES and SES Space & Defense have signed a 35K SF lease restructuring at KBS’ Reston Square. The government contractor has been located at the office building at 11790 Sunrise Valley Drive since 2014.
The tenant is downsizing in light of new hybrid work habits, although it didn't say by how much. Along with the lease, SES and SES Space & Defense are building out a new space to “allow for maximum flexibility that supports its hybrid work strategy.” Avison Young represented KBS, and Cresa’s Sam Heiber and Tom Birnbach represented the tenant.
SALES
Bozzuto acquired a 135-unit residential building in Arlington, its first multifamily acquisition in 16 years, according to the Washington Business Journal, which first reported the news. The Greenbelt, Maryland-based firm paid $45.5M for Gables 12 Twenty One at 1200 N. Queen St. and 1201 and 1225 N. Pierce St., according to property records. Berkadia’s Patrick McGlohn, Brian Gould, Miles Drinkwalter and Pat Cunningham secured $27.3M in acquisition financing. The seller was Florida-based Gables Residential.
MILESTONES
Donohoe Development announced plans to develop a 400K SF industrial and self-storage project in Silver Spring. The project across 10 acres at 8800 Brookville Road is planned for two phases, the first delivering a 75K SF industrial building and a 120K SF self-storage facility. It is expected to break ground in the first quarter of 2025 and become available in early 2026.
The project represents a new endeavor for Donohoe, which has traditionally developed multifamily, mixed-use and hospitality projects. Donohoe Commercial Real Estate is managing the lease-up and will consider build-to-suit options for larger tenants requiring specific configurations, according to the announcement.
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Marx Realty has finished repositioning its One Glover office building at 2121 Wisconsin Ave. NW, the New York-based firm announced. With the milestone, Marx also announced it inked Water Street Gym for nearly 7K SF on the first floor on a 10-year lease. Marx acquired the 110K SF property in Glover Park in 2022. Transwestern’s John Schlagel represented Water Street Gym, and Cushman & Wakefield’s Mark Wooters and James Collins represented Marx.
THIS AND THAT
An office building at 1200 K St. NW is headed to foreclosure auction. Lender Starwood Property Trust issued a foreclosure affidavit earlier this month for the 390K SF property owned by Brookfield Properties. It is now headed to auction with Alex Cooper Auctioneers, according to a foreclosure notice filed with the D.C. Recorder of Deeds Thursday. The notice showed $142.7M left on the note. The auction is set to be held on May 30 at 1:30 p.m. at 4910 Massachusetts Ave. NW, Suite 100.
