Saturday, February 22, 2025
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District of Columbia

CivicDevelopmentDistrict of ColumbiaOfficeSoutheast

GSA Awards $524M Construction Contract for CISA Headquarters Building in DC

by John Nelson

WASHINGTON, D.C. — The U.S. General Services Administration (GSA), along with the U.S. Department of Homeland Security, has awarded Clark Construction the $524 million contract to build the new headquarters for the Cybersecurity and Infrastructure Security Agency (CISA). The new 630,000-square-foot federal building will be located at the St. Elizabeths West Campus in Washington, D.C. As part of the Biden Administration’s goal to achieve net-zero emissions from federal buildings by 2045, the contract features $80 million to purchase low-embodied carbon construction materials including asphalt, concrete, glass and steel, as well as $35 million to meet high-performance green building standards. The new CISA building is designed to meet LEED Gold certification standards with sustainable features including chilled beams, a dedicated outside air system with energy recovery and demand-controlled ventilation, advanced lighting controls and a high-performance building envelope. The contract includes a nearly $115.9 million investment via the Inflation Reduction Act (IRA), making it the GSA’s largest single IRA investment to date. CNBC, citing data from the Massachusetts Institute of Technology (MIT) and the Rhodium Group, reports that companies have announced approximately $493 billion of investments in clean energy tech, infrastructure and electric vehicle manufacturing since the IRA was signed into law …

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Affordable HousingDistrict of ColumbiaLoansMultifamilySoutheast

MBA: Multifamily Lending Declined by 49 Percent in 2023

by John Nelson

WASHINGTON, D.C. — Multifamily lending declined 49 percent year-over-year in 2023, according to a report by the Mortgage Bankers Association (MBA). Lenders provided a total $246.2 billion for apartment buildings with five or more units last year, with 51 percent of active lenders making five or fewer multifamily loans throughout the year. The Washington, D.C.-based organization previously estimated that multifamily originations totaled $264 billion. By volume, the top five multifamily lenders in 2023 included Berkadia, Walker & Dunlop, JP Morgan Chase & Co., CBRE and Greystone. Nearly half (42 percent) of the dollar volume went to the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. “The analysis shows that even with the drop in activity, the multifamily lending market remains broad and deep, with more than 2,500 different lenders making more than 36,000 mortgage loans backed by multifamily properties,” says Jamie Woodwell, MBA’s head of commercial real estate research. The MBA report is based on its surveys of the larger multifamily lenders and the recently released Home Mortgage Disclosure Act (HMDA) data that covers multifamily loans made by many smaller lenders, particularly commercial banks.

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District of ColumbiaLeasing ActivityOfficeSoutheast

CBRE Negotiates Office Lease at 1050 17th Street in DC

by John Nelson

WASHINGTON, D.C. — CBRE has negotiated a 7,282-square-foot office lease at 1050 17th Street, a trophy 11-story office building in Washington, D.C. Randy Harrell, Lara Nealon, Joe Coleman and Brittany Gosnell of CBRE represented the landlord, Hines, in the lease negotiations. Tucker Farman of JLL represented the tenant, Allsteel, a manufacturer of workplace furnishings and products. The LEED Gold-certified office building features a fitness center, 100-person multipurpose conference center and a lounge on the second floor. Other tenants at the 154,000-square-foot property include Davis Polk and Dweck Properties.

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AcquisitionsDistrict of ColumbiaMultifamilyOfficeSoutheast

JLL Arranges $21.5M Sale of Office Building in DC, Buyer Plans Multifamily Conversion

by John Nelson

WASHINGTON, D.C. — JLL Capital Markets has arranged the $21.5 million sale of an office building located at 1201 Connecticut Ave. NW in the Dupont Circle neighborhood of Washington, D.C. The 12-story building comprises 190,385 square feet of Class B office space. Tom Hall, Matt Nicholson, Kevin Byrd, Jim Meisel, Andrew Weir and Dave Baker of JLL represented the seller, a subsidiary of BrightSpire Capital, in the transaction. An affiliate of Duball acquired the property, with plans to convert the development to a 161-unit multifamily community. Plans include the utilization of the ground-floor for retail space and the addition of a pool and amenity spaces to the roof. A development timeline was not disclosed.

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District of ColumbiaSoutheast

US Economy Adds 114,000 Jobs in July, Below Expectations from Dow Jones Economists

by John Nelson

WASHINGTON, D.C. — The U.S. Bureau of Labor Statistics (BLS) has reported that the U.S. economy has added 114,000 jobs in July, far below the 215,000 monthly average over the previous 12 months. The total is also below the 185,000 jobs that Dow Jones economists estimated for the month, according to CNBC. Additionally, the BLS revised down the May and June totals by a collective 29,000 jobs. The U.S. unemployment rate increased to 4.3 percent, its highest level since October 2021 and a 20-basis-point increase from June. Healthcare saw the largest monthly increase with 55,000 jobs added in July, a little below the sector’s monthly average of 63,000 over the prior 12 months. Sectors that saw nominal growth included construction (25,000 jobs), government (17,000), transportation and warehousing (14,000) and social assistance (9,000). Information employment declined by 20,000 jobs. Other sectors, including manufacturing, professional and business services and leisure and hospitality, saw minimal change from June.

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AcquisitionsDistrict of ColumbiaHospitalityLoansSoutheast

Cronheim Hotel Capital Arranges $42.3M Acquisition Loan for Cambria Hotel in Downtown DC

by John Nelson

WASHINGTON, D.C. — Cronheim Hotel Capital has arranged a $42.3 million acquisition loan for Cambria Hotel Washington, D.C. Convention Center, a 182-room hotel located at 899 O St. NW in downtown D.C. Built in 2014 by Concord Hospitality, the hotel is situated with a half-mile of the Walter E. Washington Convention Center and features a rooftop gathering area. The borrower, locally based Frontier Development & Hospitality Group, plans to overhaul the hotel and rebrand it to the Hyatt House flag. Other details of the renovation and loan underwriting were not disclosed.

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Affordable HousingDistrict of ColumbiaMultifamilySoutheast

Multifamily Industry Says Biden’s Proposed Rent Cap Would Punish Tenants

by John Nelson

WASHINGTON, D.C. — The Biden administration has called on Congress to pass rent-control legislation that would affect more than 20 million rental homes across the country. Under the proposed rule, landlords with more than 50 units in their portfolios would forfeit federal tax breaks if they raise rents annually more than 5 percent on their existing units. If passed, this rule would be in force beginning this year and would last through 2026. The plan would include an exception for new construction and for units currently undergoing substantial renovation or rehabilitation. Failing to hit the 5 percent cap, owners would lose out on what’s known as “faster deprecation” write-offs. According to Investopedia, property owners can deduct market value loss and the costs of buying and improving a property from their taxes. Most multifamily industry leaders are against rent control for several reasons but chiefly because they say such measures reduce the incentive to build more housing or to renovate and improve existing properties. Ahead of the White House’s announcement, which was released this morning, numerous public policy groups spoke out against the proposal. “This legislative proposal will not create a single new unit while raising costs on the very residents …

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DevelopmentDistrict of ColumbiaMultifamilySoutheast

Fivesquares, Aimco Open Two Residential Buildings in North Bethesda, Maryland

by John Nelson

NORTH BETHESDA, MD. — Fivesquares Development and Apartment Investment and Management Co. (Aimco) have opened two multifamily residential buildings in North Bethesda, roughly 13 miles outside downtown Washington, D.C. Dubbed Ravel and Royale, the properties are located at 10511 Strathmore Hall St., adjacent to the Strathmore Music Center, Rock Creek Park and a Washington Metropolitan Area Transit Authority (Metro) station. Ravel and Royale mark the first residential buildings to be delivered at Strathmore Square, a master-planned transit-oriented development that will total 2.2 million square feet upon completion. Ravel, named for French composer and pianist Maurice Ravel, comprises 49 units across nine stories, with two- and three-bedroom layouts. Amenities at the property include 24-hour concierge service. Royale spans 10 stories and features 171 units in one-, two- and three-bedroom layouts. Amenities at the building include workspaces, a fitness center, yoga studio, pool, rooftop deck and a pet spa. The two buildings are also connected by a central courtyard with lounge areas and a firepit. Residents will also have access to bike storage, commercial washers and dryers, high-speed elevators and an onsite property management team.

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Affordable HousingDevelopmentDistrict of ColumbiaMultifamilySoutheast

US Representatives Propose Bipartisan Bill to Address Housing Crisis

by John Nelson

WASHINGTON, D.C. — U.S. Reps. Mike Carey (R-Ohio) and Jimmy Gomez (D-Calif.) have proposed a bill to address the housing crisis in the United States. Dubbed the Revitalizing Downtowns and Main Streets Act, the bill would include a 20 percent tax credit for expenses attendant upon converting certain underutilized or vacant commercial property older than 20 years for residential use. Additionally, the legislation includes a stipulation that 20 percent of the converted residential units be designated for residents earning at or below 80 percent of the area median income (AMI), as well as incentives for rural and economically distressed areas and the ability to combine existing historic tax credits and other state and municipality incentives. NAIOP (National Association for Industrial and Office Parks) commended the proposed legislation, with president and CEO Marc Selvitelli stating that it “will spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the United States.”

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AcquisitionsDevelopmentDistrict of ColumbiaMultifamilySoutheastStudent Housing

Joint Venture Acquires Boathouse Apartments in DC for $67.5M, Plans to Reposition for Student Housing

by John Nelson

WASHINGTON, D.C. — A joint venture between Up Campus Student Living, Palmor Capital, BridgeInvest and Sabal Investment Holdings has purchased Boathouse, a 250-unit multifamily community located at 2601 Virginia Ave. NW in Washington, D.C.’s Foggy Bottom neighborhood. An undisclosed seller sold the property for $67.5 million. The new ownership is embarking on a redevelopment plan to convert and rebrand Boathouse to off-campus housing for students, faculty and staff for nearby George Washington University. Planned renovations to the 10-story property include updated amenities, common areas and fully furnishing all 250 units. The property, which features retail space and two levels of underground parking, was recently renovated by the previous ownership.

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