The 195 million-square-foot Washington, D.C., metropolitan industrial market features various sectors and centers of demand across the region. The overall market has been extremely healthy, with unique forces impacting the area’s primary regions of Northern Virginia, Suburban Maryland and Washington, D.C. The overall metro market expanded between first-quarter 2017 and first-quarter 2018. Net absorption in the period was 1.7 million square feet, albeit a significant slowdown from the previous 12-month cycle (4.2 million square feet). After falling significantly during the past five years, vacancy remained relatively flat in first-quarter 2018 and settled at 6.8 percent, a 10-basis-point drop year-over-year. A lack of available space limited opportunities for occupancy gains but allowed owners to increase asking rents. The average asking rent rose sharply to $10.04 per square foot, up from $9.58 per square foot one year earlier. Of the 1.9 million square feet of new supply under construction, 1.3 million square feet was in Northern Virginia’s less constrained but in-demand Loudoun County. Overall new supply was 55 percent preleased at the end of the first quarter. The Washington metro industrial market inside the Interstate 495 Beltway contrasts in many ways to the market outside the Beltway. The most significant difference is …
WASHINGTON, D.C. — Grandbridge Real Estate Capital has secured a $32 million loan for the refinancing of Reed Row Apartments, a newly developed, 132-unit apartment community in Washington, D.C.’s Adams Morgan neighborhood. Phillip Cox and Bill Mattice of Grandbridge arranged the 10-year, interest-only loan through a correspondent insurance company. The name of the borrower was not disclosed, but according to local media reports, Kettler, a Virginia-based multifamily developer and property manager, developed the property this year. Reed Row features a private courtyard, outdoor chess table and fire pit, coworking space, fitness center, bike room, dog washing station and a rooftop terrace.
WASHINGTON, D.C. — HFF has arranged the sale and financing for the Jefferson Building, a 73,168-square-foot office building located in Washington D.C.’s central business district. Jim Meisel, Andrew Weir, Stephen Conley, Matt Nicholson and Dave Baker of HFF brokered the transaction on behalf of the seller, Invesco Real Estate, and procured the buyer, Marcus Partners. In addition, HFF’s Dan McIntrye and Jay Graham arranged acquisition financing through a balance sheet lender on behalf of the buyer. The purchase price and loan amount were not disclosed. The eight-story Jefferson Building, most recently renovated in 2016, is situated within walking distance to four Metrorail stations. The property was 87 percent leased at the time of sale to 12 tenants including SN/SI Networks LLC, International Center for Alcohol Policies, Relman, Dan & Colfax PLLC and London & Mead/Andrew J. Kline LLC. In addition, the Jefferson Building houses The Palm, one of D.C.’s landmark restaurants.
WASHINGTON, D.C. — The Society of Industrial and Office Realtors (SIOR) has appointed Tom McCormick as its new CEO. McCormick, an industrial specialist based out of Irvine, Calif., has been an SIOR member for 33 years and has served as SIOR global past president, SIOR foundation past president, his local chapter’s past president and most recently as SIOR’s operations director on the board of directors. He is the first SIOR designee to hold an executive position within the organization. McCormick joins SIOR from Rockefeller Group International, where he served as senior vice president of national accounts before retiring a little over a year ago. Prior to that role, he held positions at Coldwell Banker Commercial and Panattoni. “I am thrilled that Tom has agreed to take on the challenge as our new leader,” said Del Markward, SIOR 2018 global president, in a statement. “His commitment and service to SIOR has been demonstrated across the board. Tom’s management skills and depth of knowledge make him a solid mentor and role model for our members, staff and the industry as a whole.” Founded in October 1940, SIOR is a Washington, D.C.-based organization comprising nearly 3,100 industrial and office real estate specialists. The broker network …
NEW YORK CITY, MIAMI AND WASHINGTON, D.C. — Qatar-based Al Rayyan Tourism Investment Co. (ARTIC) has received $503 million in refinancing for a three-property hotel portfolio totaling 1,049 rooms in New York City, Miami and Washington, D.C. HFF arranged three floating-rate loans through Mack Real Estate Credit Strategies for the refinancing. The breakdown includes: a $290 million loan for The Manhattan at Times Square Hotel; a $132 million loan for the St. Regis Bal Harbour Resort in Miami; and an $81 million loan for the St. Regis Washington, D.C. Each loan carries a four-year term. Originally developed in 1952, The Manhattan at Times Square Hotel houses 685 rooms and 9,100 square feet of retail space. The 22-story hotel is located in Times Square at 790 7th Ave. ARTIC will continue to operate the hotel and plans to redevelop the property into a much taller mixed-use tower. Once redeveloped, the building will include 44,000 square feet of LED signage wrapping the base, 134,000 square feet of retail space, 250 hotel rooms and 150 luxury condominium residences. The St. Regis Bal Harbour is a 27-story luxury hotel in Miami with 192 guest rooms and 24 condo units. The hotel features the Remède Spa, two pools, a …
WASHINGTON, D.C. — A joint venture led by Urban Investment Partners (UIP) has acquired 3333 Wisconsin, a 100-unit apartment building located at 3333 Wisconsin Ave. N.W. in Washington, D.C.’s Cathedral Heights neighborhood. The sales price was not disclosed, but the Washington Business Journal reports the asset sold for $42.5 million. UIP did not name its joint venture partner. The community is situated across Wisconsin Avenue from Cathedral Commons, a mixed-use development that houses a Giant supermarket, CVS/pharmacy, restaurants, service retailers and fitness venues. The community includes a mix of studio to two-bedroom units and features a fitness center, clubroom with a bar and pool table and an onsite Zipcar station. UIP plans to upgrade the building’s common areas and make improvements to individual unit interiors starting in the first quarter of 2019. UIP Property Management is managing the property.
WASHINGTON, D.C. — CIM Group has acquired Trellis House, a newly constructed, 319-unit apartment community located at 907 Barry Place N.W. in Washington, D.C., for an undisclosed price. Gateway Investment Partners and RISE: A Real Estate Co., completed construction on the six-story community earlier this year, according to local media reports. The LEED-certified building includes a mix of studio to two-bedroom units, as well as townhomes. Community amenities include a 12,000-square-foot courtyard and pool deck with fireplaces and grill stations; fitness center with spin stations and a yoga studio; club and game room; test kitchen, coworking area; rooftop observation deck; and a pet spa. In addition, Trellis House includes 11,000 square feet of ground-floor retail space. The community is located adjacent to Howard University and is proximate to the Green Line subway that provides connections to the entire Metro network.
WASHINGTON, D.C. — New York-based real estate investment trust Paramount Group has agreed to sell 2099 Pennsylvania Ave., a 12-story, 208,776-square-foot office building in Washington, D.C. for $220 million. The buyer is undisclosed. Designed by architectural firm Pei Cobb Freed & Partners, the building is situated in the heart of the nation’s capital, within walking distance of the White House, U.S. Treasury and Executive Office Building. The floor-to-ceiling glass façade and outdoor terraces offer views of national monuments, the Potomac River, White House and the city skyline. The LEED Gold-certified property features 24-hour security, floor sizes ranging from 12,100 to 17,500 square feet, a two-story marble lobby, tenant-only fitness center and on-site parking. Paramount acquired the building in 2012 from Vico Capital for $155 million. At the time, the property had large blocks of vacancy. “We have been creating value at 2099 Pennsylvania Ave. by increasing leased occupancy to 98.5 percent from 31.6 percent. With this sale, we are harvesting that value,” says Albert Behler, CEO and president of Paramount. “Our strong leasing team converted an asset with large blocks of vacancy into one of the best Class A properties in the Washington, D.C. market, valued at over $1,050 per square …
WASHINGTON, D.C. — HFF has brokered the $415 million sale of Washington Harbour, a 562,105-square-foot mixed-use project located along the Potomac River in Washington, D.C.’s Georgetown submarket. Stephen Conley, Jim Meisel, Andrew Weir, Matt Nicholson and Dave Baker of HFF represented the seller, Principal Real Estate Investors (PREI), on behalf of a consortium of South Korean-based investors. Simone Investment and Hana Alternative Asset Management acted as the managing members of the consortium. Eyal Ofer’s Global Holdings Group, an international alliance of real estate asset management and investment advisory companies, purchased the asset. Designed by Arthur Cotton Moore, Washington Harbour comprises two freestanding, Class A towers. The property underwent a $50 million renovation in 2013 that delivered new retail and street-level experiences, including a fountain with programmable light and water shows in the spring and summer that transforms into a 12,000-square-foot ice skating rink in the fall and winter months. The project was 98 percent leased at the time of sale to 31 tenants including Foley & Lardner, Kelley Drye & Warren, advertising firm GMMB Inc., and retail tenants such as Fiola Mare, Farmers Fishers Bakers, Bangkok Joe’s, Sequoia, Tony & Joe’s Seafood Place and Nick’s Riverside Grill.
WASHINGTON, D.C. — The recently merged operation of Madison Marquette and PMRG has moved its headquarters to 1000 Maine, the trophy office building of The Wharf. Madison Marquette, which is co-developing the 2.2 million-square-foot, waterfront mixed-use project, merged operations with PMRG in June. The combined company will occupy 26,000 square feet at 1000 Maine, which features a soaring lobby and waterside atrium, fitness facility overlooking the water and a 10,000-square-foot rooftop conference center and patio space with views of the Potomac River. Capital Guidance, parent company of Madison Marquette and PMRG, will share the new space for its global headquarters. Additional tenants at 1000 Maine include the D.C. office of Fish & Richardson, Washington Gas and its parent energy company WGL, Socially Determined and the law offices of Michael Best & Friedrich LLP. The office building is part of The Wharf’s first phase of development, which includes a concert hall, three hotels, two multifamily and condominium buildings and 210,000 square feet of restaurants, retail and entertainment space. Phase I of The Wharf opened last October, and Phase II of the project is scheduled to open in 2022.