District of Columbia

Smithsonian Institution Pays $254M for New Headquarters in Washington, D.C.

by Alex Patton June 26, 2020

WASHINGTON, D.C. — The Smithsonian Institution has acquired the 318,557-square-foot West Tower of the Capital Gallery office property in Washington, D.C. for $254 million. The U.S. government entity, which operates 19 museums and nine research centers, will use the building as its new headquarters. Located at 600 Maryland Ave. S.W., the 10-story glass building makes up just over half of the two-building property, which totals 631,029 square feet of Class A office space. Smithsonian also acquired four floors of the eight-story East Tower. Smithsonian already leases office space within the building, and the acquisition is part of a plan to consolidate five office spaces in the Washington, D.C. area into a single location. The financial and administrative offices, currently located in Crystal City at 2011 Crystal Drive, in Arlington, Virginia, are the largest offices to move to the new administrative headquarters. Other offices to be consolidated include spaces at 955 L’Enfant Plaza S.W.; 425 Third St. S.W.; and 901 D St. S.W. The move is scheduled to begin early next year. “The reason for purchasing an office building near the National Mall is twofold — it is more efficient to have staff together in a central location and it is …

June 26, 2020

District of Columbia Southeast

Nearly 1.5M Americans File First-Time Unemployment Claims in Latest Weekly Figures

by Alex Tostado June 25, 2020

WASHINGTON, D.C. — Nearly 1.5 million Americans filed first-time unemployment claims during the week ending June 20, the U.S. Department of Labor reports. The claims remain historically high in the midst of the worldwide COVID-19 outbreak, though the week-over-week numbers have declined for 12 consecutive weeks. The most recent figure was 60,000 fewer than the previous week’s total. Economists surveyed by Dow Jones anticipated a total of under 1.4 million claims for the week. Furthermore, the four-week moving average has also been steadily declining, dropping by 160,750 claims to 1.6 million, according to the Department of Labor. Continuing claims also fell by 767,000 claims to under just over 19.5 million. This is the first week since the economic shutdown in mid-March that continuing claims have fallen below 20 million.

June 25, 2020

Development District of Columbia Multifamily Southeast

Jefferson Apartment Group, Stars REI Deliver 132-Unit Multifamily Community in D.C.

by Alex Tostado June 22, 2020

WASHINGTON, D.C. — Jefferson Apartment Group and Stars REI have delivered J Linea, a 132-unit apartment community in Washington, D.C.’s Shaw neighborhood. The property is situated at 2009 8th St., less than two miles from downtown D.C. J Linea offers studio, one- and two-bedroom floor plans, each featuring stainless steel appliances, quartz countertops and backsplashes, kitchen islands, plank flooring and floor-to-ceiling windows. Communal amenities include a fitness center, rooftop terrace, coworking booths, 24/7 Amazon Hub package system and 16,000 square feet of ground-floor retail space. The joint venture acquired the site in 2016.

June 22, 2020

District of Columbia Southeast

Over 1.5M Americans File First-Time Unemployment Claims, Continuing 11-Week Trend of Weekly Dip

by Alex Tostado June 18, 2020

WASHINGTON, D.C. — Just over 1.5 million Americans filed first-time unemployment claims during the week ending June 13, the U.S. Department of Labor reported this morning. The most recent figure was a 58,000-claim decrease from the previous week, continuing an 11-week trend of lowering initial claims. Economists surveyed by Dow Jones forecasted an increase of 1.3 million claims. As the COVID-19 pandemic still hammers the U.S. economy, there are signs of a loosening grip, as the four-week moving average continues to trend downward. The moving average came in at 1.8 million claims, a decrease of 234,500 from the previous average. Additionally, the number of Americans on continuing unemployment dipped below 20.5 million, a slight decline of 62,000 from the previous week.

June 18, 2020

District of Columbia Loans Office Southeast

JLL Arranges $68.5M Refinancing Loan for Office Building in D.C.’s Golden Triangle District

by Alex Tostado June 18, 2020

WASHINGTON, D.C. — JLL has arranged a $68.5 million refinancing loan for 1750 K St., a 165,604-square-foot office building in Washington, D.C. Bridge Investment Group provided the floating-rate loan to the borrower, Mirae Asset Global Investments. The 12-story property is fully leased to five tenants and is located within D.C.’s Golden Triangle neighborhood. Cary Abod, Rob Carey and Andrew Weir of JLL arranged the loan on behalf of the borrower.

June 18, 2020

District of Columbia Southeast

Freddie Mac, Fannie Mae Hire Financial Advisors to Exit Conservatorship

by Alex Tostado June 16, 2020

WASHINGTON, D.C. — Freddie Mac and Fannie Mae have hired separate financial advisors to guide the agencies in exiting conservatorship. Freddie Mac has brought on J.P Morgan, and Fannie Mae has hired Morgan Stanley & Co. LLC. Both government-sponsored enterprises (GSEs) are based in Washington, D.C. The Federal Finance Housing Agency (FHFA) became the conservator for both Fannie Mae and Freddie Mac in 2008 during the Great Recession to oversee the lending activity of the agencies. The FHFA helps ensure that Fannie Mae and Freddie Mac are providing counter-cyclical liquidity and support sustainable homeownership and affordable rental housing. The timeline for the GSEs to exit conservatorship was not specifically disclosed, though FHFA director Mark Calabria says it won’t be before 2024. The FHFA announced Freddie Mac’s and Fannie Mae’s intentions of exiting conservatorship in the 2020 FHFA Scorecard, which was released in October 2019. The Scorecard is a tool used to align the GSEs’ priorities and operations with FHFA’s Strategic Plan for the lenders.

June 16, 2020

District of Columbia Restaurant Retail Southeast

US Retail Sales Surge 17.7 Percent in May, Says Commerce Department

by Alex Tostado June 16, 2020

WASHINGTON, D.C. — The advance estimate for U.S. retail and food services sales, including e-commerce, in May is 17.7 percent higher than in April, the U.S. Commerce Department reported this morning. May is the first month since the COVID-19 outbreak halted the U.S. economy that has shown positive month-over-month growth. April was down 14.7 percent from March, and March decreased nearly 10 percent from February. Spending in May was at $485.5 billion, still lower than pre-pandemic levels. February’s total spending came in at $527.3 billion. “These sales numbers do not reflect the same strength we had going into the pandemic, but they certainly reflect the trajectory we need coming out of it,” National Retail Federation (NRF) president and CEO Matthew Shay said in an interview on CNBC’s “Squawk Box.” “The most important thing now is to keep these retail stores open for business and not penalize them by closing their doors in the event of a coronavirus surge. “As those stores that remained open have shown, retailers have developed solutions that protect the safety of their customers and associates, and they are sharing those lessons to the benefit of store owners large and small in communities across the country.”

June 16, 2020

District of Columbia Leasing Activity Office Southeast

Law Firm Wiley Rein Inks 166,000 SF Lease at New Office Tower in D.C.

by Alex Tostado June 15, 2020

WASHINGTON, D.C. — Law firm Wiley Rein LLP has signed a 166,000-square-foot office lease for its new headquarters at 2050 M St. in Washington, D.C. The law firm will occupy the third through seventh floors of the 11-story, 340,000-square-foot building, which is now 81 percent leased. The owner of the property, Tishman Speyer, delivered the asset earlier this year. The office space is part of the larger CBS Washington, D.C. bureau. As part of the development process, new CBS studios were constructed with a separate entrance. The building is located less than one mile from downtown D.C. and Dupont Circle. Lou Christopher, Jordan Brainard, Tim Dempsey and Greg Maurer-Hollaender of CBRE represented the tenant in the negotiation.

June 15, 2020

District of Columbia Market Reports Southeast Southeast Market Reports

D.C.’s Tax Rate Maze: An Imperfect System Has Increased Property Taxes for Many Real Estate Owners

by John Nelson June 15, 2020

By Sydney Bardouil, Esq. If you own or manage real property in the District of Columbia and are wondering why your real estate tax bill has gone up in recent years, you are not alone. One common culprit is rising assessed value, but that may not be the main or only source of an increase. A less obvious contributor may be a new, different, or incorrect tax rate. Since tax rates vary greatly depending on a property’s use, staying diligent when it comes to your real estate’s tax class and billed rate is critical. The District of Columbia applies differing tax rates to residential, commercial, mixed-use, vacant and blighted properties. Why is this important? Because the classification can make a considerable difference in annual tax liability – even for two properties with identical assessment values. For example, a multifamily complex assessed at $20 million incurs a tax liability of $170,000 per year while the same property, if designated as blighted, incurs an annual tax liability almost twelve times greater at $2 million. Therefore, the assessed value is just one piece of the puzzle. Keeping a sharp eye on a property’s tax bill for the accuracy of any tax rate changes …

June 15, 2020

District of Columbia Multifamily Southeast

NMHC Rent Tracker: 80.8 Percent of Apartment Households Paid June Rent

by Alex Tostado June 12, 2020

WASHINGTON, D.C. — The National Multifamily Housing Council (NMHC) Rent Payment Tracker found that as of June 6, 80.8 percent of apartment households paid rent for the month of June. The Washington, D.C.-based organization reports that the June figure is a 0.6 percent increase over May 6, but it is a 0.7 percent decrease from this point in June 2019. Nearly 20 percent of households with at-risk wages in small multifamily apartments may have difficulty paying rent, according to a study published June 11 by the Harvard Joint Center for Housing Studies. In addition, 32 percent of renter respondents to the U.S. Census Bureau’s Household Pulse Survey, conducted from May 28 to June 2, reported “no or slight confidence” in their ability to pay next month’s rent. “While our Rent Payment Tracker metric continues to show the resilience and strength of the professionally managed apartment industry, it does not necessarily tell the whole story, as it doesn’t capture rent payments for smaller landlords or for affordable and subsidized properties,” says Doug Bibby, president of NMHC. The organization surveyed apartment management companies responsible for 11.4 million units nationwide. There are 21.4 million apartments nationwide in buildings with more than five units, …

June 12, 2020

Newer Posts

Older Posts