With office vacancy rates in the District of Columbia at 20 percent and climbing, officials believe that converting office buildings to residential space is an important component of revitalizing downtown Washington. These complex projects pose both practical and administerial challenges, however. For developers, one important consideration of such a redevelopment is its real estate tax implications. High hopes District leaders announced earlier this year that they hope to add 15,000 residents to the central business district over the next five years – an ambitious goal. The hope is that bringing residents to live downtown will create a more vibrant neighborhood where people live, work, and dine. The stark reality is that the District of Columbia has one of the lowest return-to-office rates in the country. Actual occupancy in the D.C. metro was only 43 percent in mid-April and drops below 25 percent on Fridays, according to Kastle Systems, which tracks office occupancy. Workers simply aren’t returning to Downtown D.C. While residential conversions may be one piece of the puzzle in addressing D.C.’s downtown woes, converting an office building into a residential property is no small feat. Here are a few important factors relating to real estate taxes to keep in …
WASHINGTON, D.C. — Nonfarm employment in the United States rose by a total of 253,000 positions in April, according to the U.S. Bureau of Labor Statistics (BLS). This number reflects an increase from last month’s number, beating Wall Street Estimates of 180,000. Employment in February and March was revised down by a total of 149,000. Meanwhile, the jobless rate fell to 3.4 percent in April, matching the lowest reading since 1969. The low unemployment rate keeps upward pressure on wages, which grew 4.4 percent in April from a year earlier, according to The Wall Street Journal. That was slightly higher than a 4.3 percent annual increase in March. Sectors that saw increases in employment included professional and business services, healthcare, leisure and hospitality and social assistance. Average monthly gain in the professional and business services across the prior six months was 25,000, with April seeing the addition of 45,000 jobs. Healthcare employment increased by a comparable 40,000 positions. This is in keeping with the average monthly gain of 47,000 across the prior six months. Leisure and hospitality, social assistance and financial activities added 31,000, 25,000 and 23,000 jobs in April, respectively. Additionally, government employment increased by 23,000. This is a slowdown …
WASHINGTON, D.C. — Monument Realty, along with investment partners JRE Partners and Ghitis Property Co., has opened Sonya, a 14-story apartment community in Washington, D.C.’s NoMa district. The property’s name pays homage to the surrounding South of New York Avenue neighborhood. The 321-unit community is located at 40 Patterson St. and is bounded by First Street NE and Capital Street NE. KGD Architecture designed the property to achieve LEED Silver certification. Sonya offers a mix of studio, one-, two- and three-bedroom apartments, as well as more than 16,000 square feet of amenity space, including a rooftop pool, social club and entertainment spaces, hospitality bars and a fitness center. Rents start at $1,895 per month, according to the property website.
WASHINGTON, D.C. — International law firm Fried Frank has signed a 10-year lease extension to continue to occupy 103,000 square feet at Lafayette Tower, an 11-story office building located at 801 17th St. NW in Washington, D.C. The firm will continue to occupy floors five through eight through at least 2037. Fried Frank is an original tenant of the building, which was delivered in 2010 and is currently undergoing renovations that include updates to the fitness center and rooftop terrace, as well as the addition of an indoor lounge and event space. Kyle Luby, Matt Pacinelli and Andy Eichberg of Stream Realty Partners represented the landlord, an affiliate of Morgan Stanley Real Estate Advisor, in the lease negotiations. Chau Leung, Mark Minich Jr., Tim Dempsey, Ramneek Rickhy and Stephen Siegel of Stream Realty represented the tenant. Lafayette Tower is currently 90 percent leased, with several speculative suites available ranging from 3,900 square feet to 8,000 square feet, according to Stream Realty.
WASHINGTON, D.C. — Lowe and joint venture partner Mitsui Fudosan America Inc. have completed Gallery 64, a 492-unit apartment building in southwest Washington, D.C. The 12-story project is the final piece of the 500,000-square-foot mixed-use redevelopment of the former Randall Junior High School, which includes the Rubell Museum DC that opened in October 2022. “The focus and inspiration for the repositioned historic Randall School is arts and culture, which is expressed in every component of the campus, including the Gallery 64 apartments,” says Mark Rivers, executive vice president of Lowe. “With specially commissioned works of contemporary art showcased throughout the building, Gallery 64 residents will be immersed in a one-of-a-kind, arts- and culture-focused living environment.” Located at 64 H Street SW, Gallery 64 features studios to three-bedroom apartments, as well as 19 two-story townhomes. The apartments feature contemporary finishes, floor-to-ceiling windows and smart thermostats, and many have private patios or balconies. Monthly rental rates range from $1,927 to $5,306, according to the property website. Gallery 64’s community amenities include a music and podcast recording studio and a programmed maker space. Rooftop amenities include a resort-style pool, fire pits, grilling stations, dining niches and a dog walk. Other amenities include game …
WASHINGTON, D.C. — Barings has provided a $101.5 million bridge loan for the refinancing of the existing construction loan on the Courtyard/Residence Inn by Marriott in downtown Washington, D.C. The dual-brand hotel opened in November of 2018 and features 504 rooms. Located across from the Walter E. Washington Convention Center, the 11-story property was developed by Quadrangle Development Corp. and Capstone Development LLC. The hotel’s amenities include a restaurant, fitness center, convenience store, meeting space, kitchen and complimentary breakfast for guests, according to the hotel’s website.
WASHINGTON, D.C. — Commercial real estate and multifamily mortgage borrowing and lending totaled $816 billion in 2022, which is an 8 percent decrease from the record $891 billion set in 2021, according to the Mortgage Bankers Association’s (MBA) 2022 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation report. The Washington, D.C.-based organization forecasted a year ago that 2022 commercial real estate and multifamily originations would exceed $1 trillion. MBA reports that the 2022 volume was the second highest annual total and represents a 33 percent increase from the $614 billion volume in 2020. Jamie Woodwell, MBA’s head of commercial real estate research, says that originations started the year off strong but got sidetracked. “[Borrowing and lending] dropped off because of rising interest rates, uncertainty about property values and increased questions about the economy and some property fundamentals,” says Woodwell. “A key question for 2023 is when the market will have stabilized enough for the logjam in new deal activity to break.” Bank lending bucked the trend, increasing by 12 percent to $409 billion. Government-sponsored entities Fannie Mae and Freddie Mac had the second highest originations volume at $128 billion, followed by life insurance company and pension funds, private label CMBS …
WASHINGTON, D.C. — Nonfarm payroll employment increased by 236,000 jobs in March, according to the U.S. Bureau of Labor Statistics (BLS). The number, which reflects a slowdown in growth relative to February — which saw the addition of 326,000 jobs — largely aligns with the predictions of economists. According to CNBC, the figure marks the lowest monthly gain since December 2020, following moves by the Federal Reserve to cool labor demand in the interest of combating inflation. The number also falls below the average monthly gain of 334,000 jobs for the previous six months. Leisure and hospitality added 72,000 jobs in March, 24 percent below the average monthly gain for the prior six months (95,000). Food-and-beverage represented the bulk of the growth, adding 50,000 jobs. Government and professional and business services employment grew by 47,000 and 39,000 jobs, respectively. Healthcare added 34,000 jobs, with growth in home health services, hospitals and nursing and residential care facilities. Employment in transportation and warehousing increased marginally, adding 10,000 positions. Employment in the retail trade saw a decrease of 15,000 jobs. The unemployment rate also decreased slightly, coming down to 3.5 percent from 3.6 percent. Unemployed persons totaled 5.8 million.
WASHINGTON, D.C. — Marcus & Millichap has arranged the $8 million sale of Carleton Terrace Apartments, a 32-unit multifamily community located at 2371-2377 Champlain St. NW in Washington, D.C. Built in 1915, the property, which has been owned by the seller’s family for over 100 years, totals 30,900 square feet and is situated on a 19,876-square-foot, RA-2 zoned lot. Units at the three-story building include 28 one-bedroom and four two-bedroom apartments. Dennis Cravedi and Marty Zupancic of Marcus & Millichap brokered the transaction on behalf of the seller, an entity doing business as Carleton Terrace LLC. The buyer, a private investor, purchased the property through a collaborative TOPA (Tenant Opportunity to Purchase Act) process with the current tenants.
WASHINGTON, D.C. — A joint venture between Jefferson Apartment Group and The Fortis Co. has topped out J Coopers Row, a 12-story multifamily project located at 1319 S. Capitol St. SW in Washington, D.C. Upon completion, the development will comprise 312 apartments in one-, two- and three-bedroom layouts. Ranging in size from 474 to 1,260 square feet, the units will feature stainless steel appliances, nine-foot ceilings, plank flooring and in-unit washers and dryers. Amenities at the community will include a rooftop swimming pool, gaming area, fitness center, yoga studio, coworking space, a maker’s studio, dog run, pet spa and 24-hour concierge service. The development is situated one block from the Navy Yard-Nationals Stadium Metro Station and will offer views of the Potomac River. Jefferson Apartment Group and Fortis plan to deliver J Coopers Row in the fourth quarter.