District of Columbia

Pandemic Hits Retail Investment Sales in D.C., But Signs of Revival Start to Show

by John Nelson December 22, 2020

The retail investment sales market in the Washington, D.C.-Baltimore metro area, just like the rest of the United States, has been detrimentally impacted by COVID-19. Multi-tenant retail investment markets have essentially shut down, sellers and buyers are unable to come to pricing conclusions and most investment opportunities have shifted into urban areas that are experiencing more immediate distress. As COVID-19 cases continue to spike, and with further tightening of lockdown policy likely forthcoming, this trend will continue as the restaurant and entertainment industry bears the brunt of winter. This will present investors with the opportunity to purchase fundamentally solid urban real estate at a discount as the market for larger shopping centers waits to reset. It comes as no surprise that shopping center investment sales are anemic. Over the trailing three months in the D.C.-Baltimore area, there has been a paltry $49 million in sales volume across three transactions for retail centers exceeding $10 million. This compared to $196 million across nine transactions in the same period last year, a 75 percent decrease in volume. Further, of these transactions, two of them — Bel Air Town Center, purchased by JCR Cos. for $21 million, and Hagerstown Shopping Center, purchased by …

December 22, 2020

District of Columbia Office Southeast Top Stories Virginia

JLL Brokers Sale of Two Office Properties in Metro D.C. for $106.5M

by Katie Sloan December 18, 2020

HERNDON, VA., AND WASHINGTON, D.C. — JLL Capital Markets has brokered the sale of two office properties owned by WashREIT (NYSE: WRE) in metro Washington, D.C., for a combined $106.5 million. The company sold Monument II, a 200,000-square foot, Class A office building in Herndon, to an affiliate of Westbrook Partners; and 1227 25th St. NW, a 136,540-square-foot office asset in Washington, D.C., to an undisclosed buyer. Completed in 2000, Monument II is an eight-story office building with a five-level parking facility. The property is located at 12950 Worldgate Drive along the Dulles Toll Road near Worldgate Centre and the future Herndon Metrorail station. Few details were released regarding 1227 25th St. NW, which is located within D.C.’s central business district. “These sales further strengthen our balance sheet ahead of the post-vaccine recovery and align with our strategy to reduce our exposure to office assets, allowing us to de-risk our portfolio and improve our ability to create long-term shareholder value,” says Paul McDermott, president and CEO of WashREIT. Stephen Conley, Matt Nicholson, Jim Meisel, Andrew Weir and Dave Baker of JLL represented the seller in both transactions. Dan McIntyre and Paul Spellman, also of JLL, assisted the buyer of Monument …

December 18, 2020

Acquisitions District of Columbia Office Southeast

MC Real Estate Partners Purchases D.C. Office Building for $106M

by Alex Tostado December 17, 2020

WASHINGTON, D.C. — MC Real Estate Partners has purchased a 95,000-square-foot office building located at 1000 F St. in Washington, D.C.’s Penn Quarter district. The developer, Douglas Development, sold the property for $106 million. Eastdil Secured represented the seller in the transaction. The 11-story property features a two-story historic building at its base and was fully leased at the time of sale. Delivered in 2017, 1000 F features 7,000 square feet of retail space, two levels of below-grade parking, private terraces on five floors and access to public transportation. The asset is situated three blocks from Washington Metropolitan Area Transit Authority’s (WMATA) Metro Center, which services the Blue, Orange and Red lines.

December 17, 2020

District of Columbia Southeast

Initial Unemployment Claims Continue to Rise, Hitting 885,000 for the Week

by Alex Tostado December 17, 2020

WASHINGTON, D.C. — Another 885,000 Americans filed for initial unemployment insurance for the week ending Dec. 12, the U.S. Department of Labor reported Thursday. The most recent figure marks a 23,000-claim jump from the previous week. Economists surveyed by Dow Jones expected the claims total to fall to 808,000. The 885,000 claims mark the highest number since the week ending Oct. 10, when 898,000 claims were filed. The four-week moving average also rose, reaching 812,500, a 34,250-claim jump from the previous week.

December 17, 2020

District of Columbia Retail Southeast

Retail Sales in November Show Negative Growth for First Time Since May, Remain Higher than Last Year

by Alex Tostado December 16, 2020

WASHINGTON, D.C. — Retail sales in November declined 1.1 percent compared to October of this year, the U.S. Commerce Department reported Wednesday. The monthly decline is the first dip since April, when sales plummeted 14.7 percent due to the COVID-19 pandemic. November sales totaled $546.5 billion, which was an increase of 4.1 percent from November 2019. Additionally, the three-month period from September 2020 to November was 5.2 percent higher than the same time period a year ago. Month-over-month, motor vehicle and parts dealers, home furniture stores, electronics and appliances stores, clothing and accessories stores and sporting goods stores all reported decreased sales. The home improvement and food and beverage sectors grew 1.1 and 1.6 percent, respectively. Matthew Shay, president and CEO of the National Retail Federation (NRF), says the monthly decline is due to consumers holding steady amid rising COVID-19 cases and congressional gridlock. “Consumers held back on spending in November as virus rates spiked, states imposed retail restrictions and congressional stimulus discussions were gridlocked,” says Shay. “While consumers have been bolstered by increases in disposable income and savings, it’s clear that additional fiscal stimulus from Congress is needed and we are hopeful it will be passed soon as we enter the final …

December 16, 2020

Affordable Housing Development District of Columbia Multifamily Southeast Top Stories

Toll Brothers, GSLM Receive $160M in Construction Financing for Multifamily Redevelopment Project in Washington, D.C.

by Kristin Harlow December 16, 2020

WASHINGTON, D.C. — Toll Brothers Apartment Living and GSLM Capital Partners, a venture between L+M Development Partners and Goldman Sachs Urban Investment Group, have received $160 million in construction financing for Phase I of a new multifamily project in the NoMa neighborhood of Washington, D.C. The project will redevelop Sursum Corda Cooperative, a low-income housing complex built in 1968. Sursum’s tenant association sold the site in 2018. As part of the agreement, current residents of Sursum will have the right to rent up to 127 units included in the new complex. Phase I of the project will include 561 units, approximately 20 percent of which will be designated as affordable. It will also feature one acre of public open space and nearly 50,000 square feet of amenities. Citi Community Capital provided the $160 million, funded with $23 million of tax-exempt notes issued through the Washington, D.C. Housing Finance Agency and a $137 million taxable construction loan. In addition, Citi arranged a $160 million forward commitment for permanent financing from Freddie Mac in its role as an Optigo lender. Goldman Sachs, in addition to its land loan financing and equity participation, will purchase approximately $15.7 million of low-income housing tax credits. …

December 16, 2020

Development District of Columbia Multifamily Southeast

UIP Delivers $118M Multifamily Community in D.C., Opens to Residents in January

by Alex Tostado December 15, 2020

WASHINGTON, D.C. — The UIP Cos. Inc. has delivered The Kiley, a $118 million multifamily project in Washington, D.C.’s Southwest Waterfront district. The 315-unit property will open to residents beginning in January. UIP installed a common area HVAC system with UV light scrubbers to kill viruses. The community will offer studio to three-bedroom floor plans and two-story lofts. Communal amenities will include a golf simulator, library, bar and games on the ground floor, as well as a rooftop deck and fitness center, a pool and grills. UIP acquired and broke ground on the site of The Kiley, which was an above-ground parking structure, in 2018. WDG Architecture designed the building to include arched concrete canopies as an homage to the parking deck’s original structure. The Kiley also mirrors in size Capitol Park Tower, an adjacent community that UIP bought in 2013. Capitol Park Tower was originally built in 1962 and UIP is implementing significant renovations to the property.

December 15, 2020

Development District of Columbia Office Southeast

Stonebridge, Rockefeller to Redevelop 400,000 SF Office Building in D.C.

by Alex Tostado December 14, 2020

WASHINGTON, D.C. — Stonebridge and Rockefeller Group will redevelop the Jackson Graham Building, a 400,000-square-foot office property in Washington, D.C.’s Penn Quarter district. Redevelopment costs are expected to total more than $300 million. The building currently serves as the Washington Metropolitan Area Transit Authority’s (WMATA) headquarters. The development team expects to break ground on the project in 2023, allowing WMATA to remain at the site through 2022. Upon completion, which is slated for 2025, WMATA will not return to the space. However, WMATA will continue to own the land, which Stonebridge and Rockefeller will control on a 99-year ground lease. The Jackson Graham Building has served as WMATA’s headquarters since 1974. The asset is situated at 600 Fifth St. NW, between the White House and U.S. Capitol Building. The office building will feature a rooftop deck and a penthouse conference center.

December 14, 2020

District of Columbia Southeast

Another 853,000 Americans File for First-Time Unemployment Insurance, Highest Tally Since September

by Alex Tostado December 10, 2020

WASHINGTON, D.C. — Another 853,000 Americans filed for first-time unemployment insurance for the week ending Dec. 5, the U.S. Department of Labor reported Thursday. Economists surveyed by Dow Jones expected claims to total 730,000. The most recent figure is the highest weekly claim total since Sept. 19 and a 137,000-claim increase from the previous week’s revised number. The four-week moving average increased by 35,500 to 776,000. Continuing claims, for which data is a week behind, increased by 230,000 to just under 5.8 million. The figure represents the first increase since August.

December 10, 2020

District of Columbia Multifamily Southeast

NMHC: 75.4 Percent of Households Paid December Rent, Down 5 Percent from November

by Alex Tostado December 9, 2020

WASHINGTON, D.C. — The National Multifamily Housing Council (NMHC) has found that 75.4 percent of apartment households paid rent as of Dec. 6. NMHC surveyed its network of 11.4 million professionally managed units as part of its Rent Payment Tracker metric. The most recent figure is an 894,864-household decrease, or 7.8 percent, from Dec. 6, 2019. The December numbers are also a 500-basis point drop from Nov. 6, 2020, though the NMHC notes that Dec. 6, 2020, fell on a weekend, meaning the data might not be a true direct comparison. “While the initial rent collection figures for the first week of December are concerning, only a full month’s results will paint a complete picture,” says Doug Bibby, president of Washington, D.C.-based NMHC. “However, it should not come as a surprise that a rising number of households are struggling to make ends meet. As the nation enters a winter with increasing COVID-19 case levels and even greater economic distress — as indicated by last week’s disquieting employment report — it is only a matter of time before both renters and housing providers reach the end of their resources.” NMHC releases the survey in partnership with apartment management platforms RealPage, ResMan, Yardi, …

December 9, 2020

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