This Week's D.C. Deal Sheet: Equity Commonwealth Sells Downtown Office Building
Equity Commonwealth has offloaded its only D.C.-area asset as it continues liquidation efforts.
Miami-based Banyan Street Capital purchased the asset at 1250 H St. NW, a 196K SF office building near Metro Center, with plans for renovations. The price was $27.5M, according to D.C. deed records.
Banyan plans to renovate and expand the lobby, common areas and restrooms of the 1992 property and construct a new second-floor conference and event space with a 100-person capacity and new spec suites. The buyer said it will manage the property and oversee the improvements, while Cushman & Wakefield’s Phil Dickinson, John Benziger and Chris Getz will lease the property.
“This unique asset offers a combination of strong, in place cash flow and an attractive average lease term that affords us the ability to reimagine the office experience for both current and future tenants,” Banyan Office Division President Zac Gruber said in a release Wednesday.
This summer, Equity Commonwealth announced it would wind down its business and liquidate its four remaining properties after not seeing the buying opportunities it was hoping for. The REIT, founded by the late Sam Zell, had been offloading its office portfolio between 2014 and the onset of the pandemic, building up capital for a new slate of acquisitions. The REIT announced the sale in a press release late last month but didn't name the buyer, and the deal was recorded in deed records this week.
The sale price was well below the building's assessed value of $76.2M, the Washington Business Journal reported.
LEASES
Total Wine & More appears to be coming to Tishman Speyer’s Mazza Gallerie redevelopment in Friendship Heights. The retailer has applied with the D.C. Alcoholic Beverage and Cannabis Administration, UrbanTurf first reported. The 321-apartment project with 70K SF of retail is projected to deliver next year. H&R Retail is leasing the space, advised by Willard Retail.
SALES
A 97-unit build-to-rent townhouse community in Laurel sold for $54M, according to Northmarq, which represented the seller in the transaction. Bethesda-based Couloir Ventures was the buyer, and Berman Enterprises was the seller of The Current at Watershed, at 3101 Runnel Lane, the Washington Business Journal reported. The townhouses are three stories with three bedrooms and an average size of 1,410 SF. Northmarkq’s team was made up of Chris Doerr, Jack Brocato, Will Harvey, Shack Stanwick, Wallace Halpert and Anthony Pino.
FINANCING
Cape Advisors has secured a loan to purchase and reposition a 135-unit student housing property in College Park. The New York-based developer received a $25.4M bridge loan from RMWC, arranged by Ripco Real Estate, the brokerage announced this week. Cape Advisors plans to transition the student housing property at 4800 Berwyn House Road to multifamily, with the work expected to be completed before the 2026-2027 academic year. Plans include adding and renovating units and making enhancements to common and amenity areas. Ripco Executive Managing Director Adam Hakim and Managing Director James Murad placed the loan.
MILESTONES
A grocery store has opened its doors at a Fort Totten mixed-use development planned for nearly 2M SF. Aldi opened a 25K SF store at Art Place at Fort Totten. It is the company's second store to open in the District. The Cafritz Foundation is developing Art Place, which has already delivered 520 apartment units and a childcare center. The Aldi is the first delivery of Phase B, which is planned to include 20K SF of additional retail space, the Explore Children’s Museum and 294 apartment units.
PERSONNEL
JLL Executive Managing Director Doug Mueller is no longer with JLL. The office broker — who, along with his partner, JLL Executive Managing Director Evan Behr, won CREBA’s 2024 award for most leasing volume in the District — has departed the company he had been with since 2012. The Washington Business Journal first reported Mueller has an automatic email response saying he is no longer with the brokerage firm. Mueller hasn't announced where he will work next. He and the firm declined to comment on the departure.
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SRS Real Estate Partners is expanding its business to D.C. The Dallas-based retail brokerage hired a duo from JLL to represent tenants and landlords in the District. Arris Noble, previously a senior vice president with JLL, is coming on as managing principal and retail market leader, while Rachel Callender, who was an associate with JLL, is joining as vice president.
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For the first time in its 56-year history, WC Smith will be headed by someone outside the Smith family. Chris Smith, who has led the company for more than three decades, is stepping down from the CEO role while remaining chairman, the company announced this week. Brad Fennell, who has led the firm’s development activities for two decades, is set to take over Jan. 1.
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The Ballston Business Improvement District has a new CEO. Danette Nguyen, who serves as managing director for Maryland Women’s Business Center, will head the 12-year-old Northern Virginia BID, the organization announced this week. Nguyen officially took over for the BID’s interim CEO, Cassandra Hanley, Thursday. The BID’s previous CEO, Tina Leone, departed the role over the summer to head District Dogs.
