District of Columbia

Marcus & Millichap Brokers $4.3M Sale of Mixed-Use Property in DC

by John Nelson February 17, 2025

WASHINGTON, D.C. — Marcus & Millichap has brokered the $4.3 million sale of 6400 Georgia Ave. NW, a 13-suite mixed-used property located in Washington, D.C. Situated in the northwestern neighborhood of Brightwood, the property totals 20,680 square feet across two floors. The first floor is fully leased with seven retail suites — including Subway and other long-term local businesses — that operate on a triple-net lease basis. The second floor features six office suites, all of which were vacant at the time of sale. According to LoopNet Inc., the property was built in 1952 and renovated in 2024 to include a new roof, sump pump and other building improvements. Lorenzo Wooten and Jacob Krens of Marcus & Millichap’s D.C. office marketed the property on behalf of the family that owned the property. The buyer was not disclosed.

February 17, 2025

District of Columbia Features Loans Multifamily Southeast Southeast Feature Archive

MBA: Commercial, Multifamily Loan Volume to Increase 16 Percent in 2025

by John Nelson February 11, 2025

WASHINGTON, D.C. — The Mortgage Bankers Association (MBA) is forecasting that total commercial and multifamily mortgage borrowing and lending will rise to $583 billion in 2025, which is a 16 percent increase from 2024’s estimated total of $503 billion. The Washington, D.C.-based organization made the announcement at its 2025 Commercial/Multifamily Finance Convention and Expo (CREF) event taking place in San Diego. Multifamily lending, which is calculated into the total figure, is expected to rise to $361 billion in 2025 — also a 16 percent increase from last year’s estimate of $312 billion. MBA anticipates originations in 2026 will increase to $709 billion in total commercial real estate lending, with $419 billion of that allocated to multifamily lending. “Given the strong pickup in origination activity at the end of 2024, it appears that at least some borrowers and lenders are ready to move,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “MBA is forecasting that interest rates are going to stay within a trading range for the next few years. We expect an increase in originations across property types and capital sources, but certainly recognize the additional challenges posed by the large number of loans scheduled to mature in …

February 11, 2025

District of Columbia Southeast

US Hiring Slowed to 143,000 Jobs in January, BLS Reports

by Kristin Harlow February 7, 2025

WASHINGTON, D.C. — The U.S. economy added 143,000 jobs in January, falling short of the 169,000 figure projected by economists surveyed by The Wall Street Journal. The U.S. Bureau of Labor Statistics (BLS) reports that employers added 111,000 private sector jobs, while government sector employment grew by 32,000. Meanwhile, the unemployment rate in January was 4 percent, down from 4.1 percent the prior month. The BLS noted that neither the wildfires in Southern California that began in early January nor the cold weather across much of the country for a significant portion of the month had any discernable impact on national payroll employment, hours and earnings. In January, job gains occurred in healthcare, retail trade and social assistance. Employment declined in the mining, quarrying, and the oil and gas extraction industry. More specifically, the healthcare sector added 44,000 jobs in January, including gains in hospitals (+14,000), nursing and residential care facilities (+13,000), and home health care services (+11,000). Job growth in healthcare averaged 57,000 per month in 2024. Retail trade employment increased by 34,000 in January. Job gains occurred in general merchandise retailers (+31,000) and furniture and home furnishings retailers (+5,000). Electronics and appliance retailers lost 7,000 jobs. Retail trade …

February 7, 2025

District of Columbia Leasing Activity Office Southeast

Freshfields Signs 117,000 SF Office Lease at Midtown Center in Downtown DC

by John Nelson February 6, 2025

WASHINGTON, D.C. — Freshfields US LLP has signed a 117,000-square-foot lease at Midtown Center, a two-tower, 869,000-square-foot office property in downtown Washington, D.C. The global law firm will relocate its D.C. office from 700 13th St. NW to occupy floors six through eight in the West Tower at Midtown Center. Amy Bowser and Brooks Brown of CBRE represented the landlord, Carr Properties, in the lease negotiations, along with internal staffers Kaitlyn Rausse and Ryan Lopez. Rob Copito and Harry Stephens of CBRE represented Freshfields in the lease. Built in 2017, Midtown Center is now 80 percent occupied. Carr plans to add new amenities to the West Tower, including a rooftop penthouse and new conference and entertainment facilities. Existing amenities and features at Midtown Center include pedestrian bridges connecting the two towers, a two-level fitness center, rooftop terrace and restaurants on the ground level including Shoto, Grazie Nonna, Dauphines and Blue Bottle.

February 6, 2025

Acquisitions District of Columbia Mixed-Use Multifamily Restaurant Retail Southeast Virginia

Jamestown Unloads Stake in Georgetown Renaissance Portfolio in DC to Acadia Realty Trust

by John Nelson January 28, 2025

WASHINGTON, D.C. AND ALEXANDRIA, VA. — Atlanta-based Jamestown has sold its stake in The Georgetown Renaissance Portfolio, a collection of 22 boutique retail and residential buildings in Washington, D.C.’s Georgetown neighborhood and a lone property in nearby Alexandria, Va. New York-based Acadia Realty Trust, already a minor owner of the portfolio, purchased Jamestown’s stake for an undisclosed price. Eastdil Secured represented Jamestown in the transaction. Jamestown originally acquired its interest in The Georgetown Renaissance Portfolio in 2011. The firm had previously sold off a portion of its interest to EastBanc, which used acquisition funds from Acadia Realty Trust, back in 2016. The portfolio is now home to several retail and design brands such as B&B Italia, Poliform, Molteni, Lululemon, Patagonia and Design Within Reach.

January 28, 2025

District of Columbia Market Reports Retail Southeast Southeast Market Reports

No Boogeyman in Sight for DC’s Retail Market, Yet

by John Nelson January 27, 2025

In the summer of 2012, fresh out of college and starting my career in retail brokerage at KLNB, a seasoned retail broker-turned-developer warned me to consider other careers. “Retail is dying,” he said. “Why would people go to stores when it’s so easy to order online?” Well, it’s been 12 years since that moment, and I’m still waiting for the retail boogeyman to appear. As I write this, I’m happy to report he hasn’t arrived — and the data suggests he’s nowhere in sight. The Washington, D.C., metropolitan statistical area (MSA) is now in its tightest fundamental position on record due to limited new supply and continued demand from national, regional and franchised concepts. In the Washington, D.C. market, we have the second-lowest retail square footage per capita among major MSAs, with new retail supply representing just 0.4 percent of total inventory. This places the Capital Region in the bottom quartile of retail real estate inventory growth among national MSAs that have more than 100 million square feet of existing inventory. The result? Retail availability in the D.C. metro has decreased to 4.8 percent (compared to the national average of 4.7 percent), down from 5.1 percent year-over-year and 5.3 percent …

January 27, 2025

District of Columbia Market Reports Office Southeast Southeast Market Reports

DC Office Market Presents an Opportunity for Reclassification and Innovation

by John Nelson January 20, 2025

The Washington, D.C., office market is facing challenging times, marked by unprecedented vacancy rates, dwindling demand and a significant supply-demand imbalance. Within these constraints, the flight to quality trend is reshaping how investors and lenders view office assets and should lead to an inventory reclassification. The divide between high-quality assets and lesser properties widens almost daily, creating a bifurcated market with fierce competition for quality space. Meanwhile, older, less desirable properties languish, accumulating vacancies as they fail to meet current occupier expectations. Without intervention, the less desirable properties will continue to drag down the market’s perception, obscuring the success of top-tier spaces with a headline vacancy rate. To contribute to the stabilization of the market, office participants must acknowledge this divide and assess distressed assets not as liabilities, but as opportunities to reset and reclassify properties based on realistic usage and demand. Lenders are central to this process as they control a substantial portion of distressed office stock. After years of extending loans to stave off foreclosure during uncertain times, many are now realizing that relief is unlikely to materialize organically. As a result, foreclosures are already up 121 percent in 2024 year-to-date over 2023 in Washington, D.C. On average, …

January 20, 2025

Development District of Columbia Multifamily Southeast

Akridge, National Development Welcome First Residents to 384-Unit Byron Apartment Community in DC

by John Nelson January 17, 2025

WASHINGTON, D.C. — Akridge and National Real Estate Development have begun welcoming residents to The Byron, a 384-unit apartment community in southwest Washington, D.C. The Byron is Phase I of The Stacks, a six-acre mixed-use campus. Upon completion, The Stacks will include 2 million square feet of space, including a hotel, offices, apartments, shops and restaurants. The development team for The Stacks includes Akridge, National Development, Bridge Investment Group, Blue Coastal Capital and institutional funds managed by National Real Estate Advisors. Amenities at The Byron include a 10,000-square-foot Flex gym that features a sauna, recovery room and outdoor workout space, a multi-sport simulator, two rooftop pools, pet spa, serenity garden, TV lounge with an adjoined terrace, chef’s catering kitchen and gathering spaces. Additional conveniences include Capital Bikeshare and bike maintenance stations and an onsite resident market that is scheduled to open this summer, as well as The Passage, a pedestrian-only cobblestone street. According to Apartments.com, the 14-story building offers studios, one-, two- and three-bedroom units ranging in size from 432 to 1,565 square feet. Monthly rents start at approximately $2,230.

January 17, 2025

Acquisitions District of Columbia Multifamily Southeast

Clear Investment Group Acquires 681-Unit Marbury Plaza Apartments in Southeast DC

by John Nelson January 15, 2025

WASHINGTON, D.C. — Clear Investment Group has purchased Marbury Plaza, a 681-unit apartment community located in southeast Washington, D.C. The Chicago-based investment firm plans to rebrand the property to Langston Views and upgrade the amenity package to include a new fitness center, onsite convenience store and renovated pools and locker rooms. This is the fifth investment for the buyer’s Clear Opportunities Fund I. The seller and sales price were not disclosed.

January 15, 2025

District of Columbia Southeast

US Economy Surpasses Expectations With 256,000 Jobs Added in December

by John Nelson January 13, 2025

WASHINGTON, D.C. — The U.S. economy added 256,000 nonfarm payroll jobs in December, according to the U.S. Bureau of Labor Statistics (BLS). This figure exceeds the 155,000 jobs that Dow Jones economists forecasted for the month, according to CNBC. The total caps a year in which U.S. employment grew every month, with a monthly average of 186,000, according to the BLS. The December total surpasses the 212,000 jobs added in November, which the BLS revised down from 227,000. The BLS also revised the October jobs total up from 36,000 to now 43,000. Additionally, the U.S. unemployment rate dipped slightly to 4.1 percent. According to the BLS, the unemployment rate has either been 4.1 percent or 4.2 percent for the past seven months. December’s job creation was concentrated in healthcare (+46,000), leisure and hospitality (+43,000) and government (+33,000). Retail trade added 43,000 new jobs in December, a month after the sector saw net job loss. Employment changed little in other major industries, including construction, manufacturing, wholesale trade, professional and business services and transportation and warehousing.

January 13, 2025

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