This Week's D.C. Deal Sheet: Amazon Signs Fairfax Data Center Deal With Starwood
Amazon has agreed to occupy two data centers that Starwood Capital Group is building in Fairfax County.
The tech giant filed paperwork with the county for two addresses at Fairfax’s Renaissance Tech Park near Dulles International Airport, planned to total 2.4M SF, the Washington Business Journal reported. It will be the first tenant at the park, which is under construction across 60 acres in Herndon.
Starwood purchased the property for $134M in 2019. It entitled the site and is now undertaking a phased construction of four data center buildings and utilities space.
The project will be Fairfax County's largest data center campus “by far,” per the WBJ. Fairfax has received spillover demand from Loudoun County, the leading market for the booming data center sector, but Fairfax lawmakers passed new regulations earlier this month to restrict data center development, especially around residential areas.
LEASES
Fairstead is moving its mid-Atlantic headquarters from Bethesda to downtown D.C, cutting its footprint by more than half in the process. The New York-based developer, known for its affordable housing work, is taking just over 3K SF for a five-year term at 1101 16th St. NW, it announced this week. The 102K SF property was developed by Akridge and Stars REI and delivered in 2019. Fairstead previously occupied 7.6K SF at 4550 Montgomery Ave.
***
Sky Zone has signed a 65K SF lease at Dulles Town Center. The trampoline gym will be taking the second floor of the former Sears and is expected to open in the second quarter of 2025, property owner Srinivas Chavali told Bisnow. He said that while Sky Zone usually leases 30K SF to 40K SF, the mall’s new store will be a “flagship” for the East Coast. Chavali’s company, Virginia Property Investments, purchased the 1.2M SF mall for $46M last December.
MILESTONES
Developers have broken ground on a 115-unit affordable development in NoMa, with the design inspired by New York’s Flatiron Building. The NRP Group and Marshall Heights Community Development Organization held a ceremony kicking off construction at Emblem at 301 Florida Ave. NE this week, NRP posted on LinkedIn. The $110.8M project closed on financing in June, Bisnow reported at the time. Michael Graves is the architect on the 12-story building with 2,700 SF of ground-floor retail. The project is expected to deliver in June 2026, an NRP spokesperson told Bisnow in June.
***
Hanover Cos. and Northwestern Mutual Real Estate have broken ground on their 1.7M SF Frederick Airport Park. The industrial development near Frederick Municipal Airport is planned to include four buildings across 118 acres. The two speculative 250K SF buildings that make up Phase 1 broke ground this week. The first building is expected to deliver in the third quarter of 2025. The project is Hanover’s second industrial groundbreaking within a month. The Texas-based developer launched its industrial business in 2022.
***
St. John Properties has broken ground on the final phase of Ashburn Crossing, an 80-acre mixed-use business community in Loudoun County. The developer is immediately starting construction on one of two more speculative buildings planned — a 93K SF flex/R&D facility at 21265 Ashburn Crossing Drive. It intends to start the other, a 99K SF building at 21205 Ashburn Crossing Drive, based on leasing activity at the adjacent properties. It expects to deliver the 93K SF property in early 2026. At full build-out, Ashburn Crossing is planned for 11 buildings totaling nearly 550K SF, with a retail pad designated for a convenience store.
SALES
Eastbanc sold the 93-unit apartment and 7,200 SF retail component of its Westlight development in the West End. MEAG, German insurance company Munich Re’s asset manager, acquired the property at 1110 23rd St. NW for $79M. CBRE Investment Management helped facilitate the deal, it said in a press release. Eastbanc and JBG Smith developed the project, which also includes 71 condo units, in 2018. JBG appeared to no longer have equity in the property as of Q2, according to its latest investor materials.
FINANCING
CarrAmerica has refinanced a 120-room hotel on the waterfront in Old Town Alexandria. The D.C.-based developer received $31M from CIM Group to refinance Hotel Indigo Old Town Alexandria. Los Angeles-based CIM Group announced the deal this week. Carr developed the property at 220 S. Union Street in 2017.
***
MRK Partners has secured $59M to rehabilitate a 198-unit Gaithersburg development and convert it from market rate to affordable housing. Merchants Capital, which provided part of the financing, announced the deal in a press release this week. Amber Commons, a community of 17 three-story garden apartment buildings, will have an average affordability restriction at 60% of the area median income. Merchants Capital provided a $37.7M Freddie Mac permanent loan, and Merchants Bank provided a $21.3M equity bridge loan. The renovation is expected to deliver in August 2025 after 13 months of construction.
