This Week's D.C. Deal Sheet: Akelius Pays $70M For Woodley Park Apartments

Equity Residential has sold a 214-unit property in Woodley Park.

Akelius Residential purchased The Cleveland House Apartments at 2727 29th St. NW for $70M, according to documents posted Friday to D.C. deed records. The property, a former hotel, was built in 1954, according to Zumper.

Akelius Residential Regional Vice President Keith Fagan told Bisnow the deal was an all-cash acquisition. 

“It simply just fits into our criteria, and we’re excited to bring the property on and bring our high level of service to that community,” Fagan said. 

The transaction is reminiscent of Equity’s 2022 sale of a nearby property, the 136-unit Calvert Woodley, to Akelius for $65.5M. That property was part of a $9B deal Equity Residential closed in 2013.

Stockholm-based Akelius Residential owns 19,000 apartment units in New York, Boston, D.C., Austin, Toronto, Montreal, Québec City, Ottawa, Paris and London, according to its LinkedIn page. 

LEASES

A new coworking operator is coming to Dupont. Workbox, which has locations in seven U.S. cities, including Chicago, Minneapolis, Dallas and Pittsburgh, is preparing to open a 29K SF space on Embassy Row. The operator is expected to open on a full floor of 1333 New Hampshire Ave. NW in February. It’s the company’s first mid-Atlantic location and 12th location nationwide. Mayor Muriel Bowser announced the news Tuesday alongside the announcement of a new $26M fund from the city to invest in and support D.C.-based technology companies.

SALES

Ernst Equities’ Felipe Ernst and Thomas Development's Colin Thomas closed on the acquisition of an 88-unit garden-style apartment complex in Takoma Park. The partners purchased Takoma Flats for $14.8M, Ernst told Bisnow in an email, with a $10.6M loan from JPMorgan Chase. The property at 7730 Eastern Ave. NW is adjacent to the D.C.-Maryland border near Georgia Avenue. The stabilized asset sits on 1.5 acres and is located in an opportunity zone, Ernst said, with 500K SF of future development potential. In a LinkedIn post Tuesday, Thomas wrote that the partners look forward to “improving operations at the site” and working to entitle it to “bring much-needed housing units to the DMV.”

FINANCING

Community Housing Initiative received financing for a 125-unit senior affordable development in Dumfries, Virginia. The project, The Harbor at Quantico Creek, is located off Main Street in Dumfries, north of the Marine Corps Base Quantico. The total financing of $41M, which includes the price of acquisition, came from state and federal Low-Income Housing Tax Credits, tax-exempt bonds from the Prince William County Industrial Development Authority, equity from CAHEC and debt provided by Citi Community Capital, according to the developer’s release.

The units are reserved for seniors aged 62 and up, earning 30% to 80% or less of the area median income. The developer is partnering with Pillar Church of Dumfries and is constructing the development as part of a larger campus with a public community center. Construction is expected to start this month and be completed in summer 2026.

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Rockrose has secured a four-year extension on its loan for Lincoln Square, a 406K SF property at 555 11th St. NW, Commercial Observer first reported. The $227M loan originated in 2014 for the acquisition of the property, according to the Morningstar Credit database, which shows it matured in November. The property is 85% occupied, according to Morningstar. Law firm Latham & Watkins has a 241K SF footprint, 58% of the leasable space, with a term that expires in 2031.

Rockrose Development Corp. Director Ted Traum told Bisnow it was unable to secure a refinancing deal in this market.

“It’s a healthy building. It's just not a good moment in the capital markets to find a replacement loan,” Traum said. “So that's why we moved forward with this extension.” 

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Monday Properties has recapitalized a 2.1-acre urban infill development site in Rosslyn. The company secured financing for its properties at 1401 Wilson Boulevard and 1400 Key Blvd. from BH3 Management. The properties are home to the famous garage where “Deep Throat,” the FBI source on The Washington Post’s investigation into the Watergate scandal, met with Bob Woodward.

Monday has long had plans to build two residential towers at the site, and in Wednesday's release, Monday Properties Managing Partner Tim Helmig said the financing from BH3 means the developer is “now poised to move this project forward.”

MILESTONES

The $800M renovation of the Capital One Arena is underway. Mayor Muriel Bowser, Monumental Sports & Entertainment CEO Ted Leonsis and city officials held a groundbreaking ceremony Thursday and revealed new renderings of the project, which is expected to be completed for the 2027-2028 season. It comes after D.C. passed the $515M funding for the acquisition and its contribution to the construction this week. Monumental plans to contribute $285M to the project. 

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The General Services Administration announced plans to dispose of a 337K SF property on 12 acres in College Park. The agency, which manages the government’s real estate, is preparing to offload the property at 4700 River Road, it announced Wednesday, saying it is “no longer needed by the federal government.” The property was built in 1994. Its tenants include the government’s Animal and Plant Health Inspection Service.

PERSONNEL 

The District of Columbia Building Industry Association has elected a new board of directors. Urban Pace President Clint Mann was elected president of the board. Horning CEO Jamie Weinbaum, a former director, was elected vice president, joining the board’s other vice presidents: Hoffman & Associates President Maria Thompson and Transwestern Development Co. Regional Partner Toby Millman. The new directors include Grosvenor’s Alexandra Johns, The Menkiti Group’s Caroline Kenney, Brookfield’s Jim Bourassa, Coakley & Williams Construction’s Baboucarr Cham, Amazon Equity Fund’s Senthil Sankaran, EYA’s Aakash Thakkar and Edens’ Reynolds Allen. The full list can be found here. The election was held in late November, and the board’s term begins in January.

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The Apartment and Office Building Association of Metropolitan Washington has selected Lisa Mallory as its new president and CEO.  Mallory served as CEO of DCBIA for seven years, from 2014 to 2021, after which she was named executive director of the National Association of Health Services Executives. She succeeds Peggy Jeffers, who is retiring after leading the organization for 35 years. Mallory is scheduled to begin her role on Feb. 10.