District of Columbia

‘A Record Year’: Commercial/Multifamily Loan Originations Increased 15 Percent in 2017, Says MBA

by John Nelson February 12, 2018

WASHINGTON, D.C. — Commercial and multifamily mortgage originations for all of 2017 increased 15 percent on a year-over-year basis, bolstered by the strength of the multifamily, industrial and office sectors, according to the Mortgage Bankers Association (MBA). The preliminary estimate was released Sunday during MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2018 in San Diego. The estimate is based on the MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The MBA reported that originations totaled $491 billion in 2016. Breaking down the numbers Originations for hotel properties increased 26 percent in 2017 over the prior year, the MBA reports, followed by industrial (+22 percent), multifamily (+17 percent), office (+12 percent) and healthcare (+9 percent). On the flip side, originations for the retail sector declined 21 percent in 2017 due in part to the dramatic growth of e-commerce. Even so, it was banner year overall for the mortgage banking community. “Based on these preliminary numbers, 2017 was a record year for borrowing and lending backed by commercial real estate properties,” said Jamie Woodwell, vice president of commercial real estate research for MBA, which is headquartered in Washington, D.C. “The increase was driven by multifamily lending, particularly for Fannie Mae …

February 12, 2018

District of Columbia Office Southeast

Meridian Signs Law Firm to 103,300 SF Office Lease at Anthem Row in D.C.’s East End

by Camren Skelton February 9, 2018

WASHINGTON, D.C. — The Meridian Group has signed a 103,300-square-foot office lease with Baker Botts LLP, an international law firm, in Washington D.C.’s East End. The firm’s new office will be located at Anthem Row, a four-building office complex currently under development. The Meridian Group is underway on an extensive renovation of the 12-story building at 800 K St. The original building had a large floor plate with two cores and one main lobby. Upon completion, the property will function as two office buildings with separate main lobbies and separate addresses — 700 K St. and 800 K St. In addition, the buildings will include three levels of retail space totaling 80,000 square feet. Baker Botts, which signed a 17-year lease, will occupy the top four floors of 700 K, beginning March 2020. Evan Behr and Doug Mueller of JLL represented Meridian in the lease transaction, and Randy Harrell and Lara Nealon of CBRE represented Baker Botts. In December, fitness company Equinox announced it will open a 33,817-square-foot full-service health club at Anthem Row. In September, Truluck’s Seafood, Steak & Crab House announced plans to open a 10,313-square-foot restaurant at the project.

February 9, 2018

District of Columbia Multifamily Southeast Top Stories

Urban Investment Partners, Atalaya Acquire Apartment Community in Washington D.C. for $95.5M

by Katie Sloan January 30, 2018

WASHINGTON, D.C. — A partnership between Urban Investment Partners (UIP) and Atalaya Capital Management has acquired Onyx on First, a 266-unit apartment community located in Washington, D.C.’s Capitol Riverfront neighborhood for $95.5 million. The seller was J.P. Morgan, according to the Washington Business Journal. Constructed in 2008, Onyx on First was originally developed by Faison Development as condominiums, but was converted to rental apartments upon delivery. The property is located at 1100 First St. S.E., two blocks from Washington Nationals Park and near the Navy Yard Metro station. The community features shared amenities including a rooftop deck and pool, fitness center, picnic area with grills, courtyard, underground parking and controlled-access entry. The new ownership will update the property by installing cell phone repeaters to improve cell phone service, expanding the outdoor kitchens, installing dog runs and adding other building enhancements. Upon closing, UIP and Atalaya separated the land and building and sold the land to Safety, Income & Growth Inc. (SAFE), a publicly traded owner of ground-net leases. SAFE then leased the land to UIP under a 99-year ground lease. Andy Weiss of Gem Equity structured the placement of the ground lease. Jacob Katz of Meridian Capital represented Capital One and Fannie Mae …

January 30, 2018

District of Columbia Office Southeast

ASB Sells Office Building in D.C.’s East End for $144M

by Camren Skelton January 29, 2018

WASHINGTON, D.C. — ASB Real Estate Investments has sold 900 G Street N.W., a 112,635-square-foot office building in Washington, D.C.’s East End submarket, for $144 million. The firm completed the transaction on behalf of the Allegiance Fund, its $7.4 billion core investment vehicle. Eastdil Secured LLC arranged the transaction on behalf of ASB, and DLA Piper LLC served as ASB’s counsel. An affiliate of Masaveu Real Estate US, advised by EXAN Capital, acquired the building. Masaveu is a subsidiary of Corporacion Masaveu of Spain. ASB developed 900 G Street in partnership with MRP Realty, and subsequently acquired MRP’s interest after the project reached stabilization in 2016. The Gensler-designed building was 95 percent leased at the time of sale to tenants including Simpson Thacher, Swiss RE, Rin Tinto, Herman Miller, Truth Initiative and BMW.

January 29, 2018

District of Columbia Loans Multifamily Southeast

Record Year: Fannie Mae Multifamily’s Deal Volume Tops $67B in 2017

by Camren Skelton January 26, 2018

WASHINGTON, D.C. — Fannie Mae generated more than $67 billion in multifamily financing in 2017, the highest volume ever recorded for its Delegated Underwriting and Servicing (DUS) program, which is in its 30th year of operation. The agency financed more than 750,000 multifamily units last year, breaking records in several segments including green financing, seniors housing, structured transactions and affordable housing. Fannie Mae’s biggest gains came in its seniors housing and green products. The agency generated $5.5 billion in seniors housing loans last year, up 267 percent from 2016. For its green product — loans on properties with Green Building Certification or those targeting a 20 percent reduction in energy/water consumption — Fannie Mae closed $27.6 billion in financing last year, a 667 percent jump from its 2016 volume. Walker & Dunlop closed approximately $9.1 billion of Fannie Mae financing last year, making the firm the No. 1 DUS lender of 2017. The company also produced the most green loans last year for the agency. The top affordable housing DUS lender was Wells Fargo Multifamily Capital, the top small loan DUS lender was Arbor Commercial Funding I LLC and the top DUS lender in the seniors housing space was KeyBank NA.

January 26, 2018

District of Columbia Office Southeast

Stroock Arranges $166.2M Sale of Office Building in D.C.’s West End

by Camren Skelton January 26, 2018

WASHINGTON, D.C. — Stroock has arranged the sale of 1255 23rd St. N.W., a 341,0000-square-foot office building in Washington, D.C. An affiliate of DivcoWest acquired the property for $166.2 million, according to the Washington Business Journal. Jeff Keitelman, Steven Moskowitz, Joseph Miller, Kelly Booker and Logan Wyman of Stroock arranged the transaction on behalf of the seller, D.C.-based Carr Properties. The office building is located in the city’s West End district and is home to tenants including the Humane Society of the United States. Carr originally acquired the building in a joint venture in 2011 and invested in renovations including a new tenant amenity space, outdoor plaza and other common area improvements. During its ownership, Carr signed more than 269,000 square feet of leases at the property. Stroock also represented Carr Properties in the acquisition of 350 Morse St. N.E., a soon-to-be-developed office and retail building in D.C.’s Union Market area. Other terms of the deal were not disclosed. The building will be part of the Market Terminal project, a mixed-use development that will feature a community gathering space, terraced public gardens, parks, a water feature and a retail-anchored pedestrian plaza linking Market Terminal with the Union Market neighborhood. The Washington …

January 26, 2018

District of Columbia Hospitality Loans Southeast

PCCP Provides $44.9M Acquisition Loan for Embassy Suites Hotel in D.C.

by Camren Skelton January 23, 2018

WASHINGTON, D.C. — PCCP LLC has provided a $44.9 million loan for the acquisition of Embassy Suites at Chevy Chase Pavilion, a 198-room hotel in Washington D.C.’s Friendship Heights neighborhood. Arden Group acquired the asset from Clarion Partners. The hotel is located at 4300 Military Road N.W., on the border of northwest Washington, D.C. and Chevy Chase, Md., and within Chevy Chase Pavilion, a mixed-use complex. In addition to the hotel, the development includes a 205,000-square-foot office building and 155,000 square feet of retail. The hotel features an indoor swimming pool, health club and four meeting rooms. In addition, the hotel has access to Chevy Chase Pavilion’s 675-space underground parking garage and direct underground access to the Red Line Metro Station.

January 23, 2018

District of Columbia Multifamily Southeast

Gateway, Rise to Deliver 319-Unit Apartment Community in D.C.

by Camren Skelton January 22, 2018

WASHINGTON, D.C. — Gateway Investment Partners and RISE: A Real Estate Co., will soon deliver Trellis House, a 319-unit apartment community located in Washington D.C.’s North Shaw neighborhood. The joint venture broke ground on the property in 2016. The community is designed to meet LEED Platinum-certification, and will feature electric car charging stations, a rooftop hydroponic garden and close proximity to public transportation — three blocks from the U Street/Cardoza Metro Station. Trellis House will offer a mix of studio, one- and two-bedroom units and two-level townhome-style units, ranging from 425 to 1,218 square feet. Community amenities will include a 12,000-square-foot outdoor courtyard, two-level fitness center, pool, subzero test kitchen with video broadcast cooking demonstrations, outdoor fireplaces with grilling stations and an observation deck with downtown and Capitol views. In addition, the community will include 11,500 square feet of ground-floor retail. Preleasing for Trellis House will begin in April, with residents expected to move in by summer.

January 22, 2018

1401 New York Avenue NW in Washington, D.C.

District of Columbia Office Southeast Top Stories Uncategorized

AXA, Stewart Investment Acquire 210,000 SF Office Tower in D.C. for $165M

by Katie Sloan January 16, 2018

WASHINGTON, D.C. — A joint venture between Paris-based AXA Investment Managers – Real Assets and Stewart Investment Partners has acquired 1401 New York Avenue NW, a 210,000-square-foot office property located in Washington, D.C.’s East End, for $165 million. AXA holds the majority interest in the partnership. The sellers, Heitman and Minshall Stewart Properties, originally acquired the property in December 2013 from Lone Star Funds for $95 million. Stewart Investment Partners is a successor firm spun out from Minshall Stewart Properties. The 12-story building is LEED Gold certified and features ground-level retail and a below-grade parking garage. The property was originally built in 1983, and recently underwent renovations that included a redesigned lobby, retail frontage, the addition of new tenant amenities and the replacement of the building’s original masonry façade with a glass curtain wall system. This property is AXA’s second investment in the Washington, D.C., metro over the past few months. The company acquired Montgomery Tower, a 366,800-square-foot office tower located in Bethesda, Md., in October of last year for $132.8 million. Paris, France-based AXA Investment Managers – Real Assets operates offices in 20 countries throughout Europe, Asia-Pacific and North America. The company has 74 billion euros in assets under …

January 16, 2018

District of Columbia Market Reports Office Southeast Southeast Market Reports

D.C. Region Sees More Development as Tenants Seek Efficient, Amenity-Rich Office Space

by John Nelson January 8, 2018

On the surface, the Washington, D.C., metropolitan office market has shown little change over the past five years. But dig a little deeper, and some interesting trends emerge. Metro D.C.’s office market totaled 377 million square feet as of the third quarter of 2017 and recorded a vacancy rate of just under 15 percent — inclusive of sublease space — and cumulative net absorption of 600,000 square feet year-to-date. The market has demonstrated little change in major market indicators over the last five years. Notably, three of the last five years (2012 to 2016) recorded negative absorption on a regionwide basis — averaging 82,000 square feet annually. Overall vacancy levels have thus far been held in check in part due to vacant buildings being removed from inventory for renovation and retrofitting or for conversion from office to other uses such as schools and residential. Nevertheless, core submarkets and micro-markets are benefitting from occupancy growth and rental rate increases, with tenants demonstrating a decided preference for amenity-rich areas. Tenant Preferences Regionally, the office segment is characterized by flight to quality and tenant-leaning leasing conditions. Tenants continue to favor efficient space design. They’re relying more heavily on building amenities such as conference …

January 8, 2018

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