There are many things to be optimistic about in metropolitan Washington, D.C.’s multifamily market. Here are some facts to consider: — The D.C. metro multifamily vacancy averages 3.4 percent compared to the national average of 4.5 percent. — The D.C. region has seen $3.174 billion in multifamily sales activity year-to-date with an average cap rate of 5.2 percent. — Private investors are leading multifamily sales activity in the D.C. metro region and responsible for 64 percent of the deal flow. — Multifamily investment sales are up by 4.5 percent compared to the first half of 2015. — An influx of new workers to fill the 92,500 new jobs added in the last year has heightened demand for multifamily units despite an abundance of new supply. With a low unemployment rate of just 4.1 percent and job growth far exceeding the national average, and at its highest point since December 2000, the Nation’s Capital is humming with activity. Last year, D.C.’s multifamily market saw staggering amounts of new construction deliver with net absorption levels that surpassed all expectations. Many of the young workers are interested in an urban live-work-play environment ripe with amenities and relish the opportunity to decrease commute times …
The building height restriction — enacted in Washington, D.C. to preserve picturesque views of the United States Capitol Building and the Washington Monument — helps provide clear and exceedingly stunning views of the multitude of construction cranes that currently dot the vertical landscape of the District of Columbia. The majority of these yellow-steeled economic generators are being used to develop new residential and mixed-use projects, ranging from the NoMa district to the southeast Waterfront area and weaving through the neighboring suburbs, including Loudoun, Va., and Bethesda, Md. And, where new residential goes, supporting retail always follows, including the trendiest grocery store chains and hottest fast-casual and dine-in restaurant concepts. In addition, the area’s ever-expanding transportation network that provides a daily lifeline to D.C. and suburban workers is also paving the way for new retail opportunities as our Nation’s Capital continues to retain its reputation as among the most prolific retail locations in the country. Downtown Core Residential-only or mixed-use projects currently underway in the District are too numerous to mention, but here is a glimpse into the frenetic activity as there appears to be a bottomless appetite for new housing, particularly among Millennials. MRP Realty is developing the 1,600-unit Rhode …
WASHINGTON, D.C. — A partnership between KeyBank Real Estate Capital and an affiliate of Walton Street Capital LLC has originated a $204.1 million first mortgage loan for The Woodies Building in Washington, D.C.’s East End. The 10-story, 497,000-square-foot property was constructed in 1897 and was fully redeveloped in 2005. Scott Bois of KeyBank’s Commercial Mortgage Group arranged the financing on behalf of the borrower, Douglas Development Corp. The 12-year loan features a 10-year interest only period and a 30-year amortization schedule. KeyBank and Walton Street Capital previously closed a $196.3 million first mortgage loan on behalf of Douglas Development for the Atlantic Building, also in Washington, D.C.
WASHINGTON, D.C. — The Meridian Group, a Bethesda, Md.-based real estate investment and development firm, has purchased 1901 L Street, an eight-story office building located in downtown Washington, D.C.’s central business district. Meridian purchased the 132,372-square-foot property from New York Life in an off-market transaction for $75 million. At closing, the building will be 73 percent leased to two retail tenants — Staples and Sweetgreen — and a mix of 15 office tenants. Meridian is planning an extensive renovation of 1901 L that will add three new floors of trophy space to the top of the building. The renovation will also include a new lobby with high-end finishes, new façade and new HVAC and elevator systems, as well as a tenant-only indoor/outdoor penthouse space, fitness center and a conference center. The renovation will increase the size of the building to 206,000 square feet. Meridian selected Fox Architects to design the new building. The purchase is the fifth acquisition for an affiliate of Meridian — Meridian Realty Partners II LP, a $231.6 million discretionary fund.
The Washington, D.C., metropolitan industrial market, spreading from Frederick County, Maryland to the north, Prince William County, Virginia to the south and as far west as Loudoun County, Virginia is ideally situated between I-95 and I-81 — major transportation corridors that allow shipments to easily reach much of the country. The industrial market has improved more quickly than other sectors and fairly dramatically to the point where much of the region can be described as land-constrained and under-supplied. Certain industrial sub-segments, such as data centers, have impacted the availability of warehouse and distribution space in key locations for optimal supply chain design. As of the third quarter of 2016, the area’s industrial market totaled 190 million square feet (inclusive of flex space), divided almost equally between the markets of Suburban Maryland (90.6 million square feet) and Northern Virginia (90.2 million square feet). The District of Columbia comprised 9.2 million square feet, and 1.5 million square feet was under construction region-wide. Approximately 4.2 million square feet has been absorbed year-to-date, and vacancy was 7.9 percent — a 250-basis point decrease from 10.4 percent reported as recently as year-end 2013. In comparison, the office market has ranged from 14 to 14.9 percent …
WASHINGTON, D.C. — Trammell Crow Co. (TCC) and its joint venture partners have signed the Department of General Services (DGS) of the District of Columbia to a long-term lease for office space at Sentinel Square II, a 280,000-square-foot office building located at 1050 First St. N.E. in Washington, D.C.’s NoMa district. The DGS signed the 164,110-square-foot lease on behalf of the District’s Office of State Superintendent of Education and Department of Insurance, Securities and Banking. Both departments will move into the first eight floors of Sentinel Square II by November. The office building is owned by a joint venture between TCC, Cottonwood Partners and a subsidiary of a private real estate fund advised by Crow Holdings Capital-Real Estate. Sheryl Ellison Ponds and Robert Cooper of DGS, along with Bill Quinby, Tim Foley and David Cornbrooks of Savills Studley, represented DGS in the lease transaction.
WASHINGTON, D.C. — Trammell Crow Co., along with joint venture partners Cottonwood Partners and a subsidiary of a private real estate fund advised by Crow Holdings Capital – Real Estate, has signed a long-term lease for nearly 473,000 square feet with the Federal Communications Commission (FCC). The U.S. General Services Administration (GSA) signed the lease on behalf of the FCC at Sentinel Square III, an 11-story office building that is under construction at 45 L St. N.E. in Washington, D.C.’s NoMa district. The FCC will occupy a portion of the first two floors and the entirety of floors three through 10 by November 2019. The 545,000-square-foot Sentinel Square III is part of the ownership’s 1.3 million-square-foot, mixed-use development. The building is designed to meet Level IV security protocols and LEED Silver standards. Kevin Terry of GSA and the CBRE team of Henry Chapman, Sara Dunstan, Richard Downey and Sarah Maxwell represented the FCC in the lease transaction. The FCC is the first committed tenant at Sentinel Square III.
WASHINGTON, D.C. — A joint venture between Federal Capital Partners (FCP), Level 2 Development LLC and Clark Enterprises Inc. plans to develop The Highline, a $100 million apartment community located at 320 Florida Ave. N.E. in Washington, D.C. The property will feature 314 residential units, four penthouse residences and roughly 10,000 square feet of first-floor retail space. Designed by Eric Colbert & Associates, the 12-story community will feature warehouse-style windows, materials reminiscent of rail cars and riveted steel columns. Located one block from the NoMa/Gallaudet Red Line Metro Station, The Highline will include a rooftop pool, a green roof, bio retention facility, energy-efficient building design and 105 bicycle parking spaces. In conjunction with The Highline, the joint venture will develop 13 three-bedroom townhomes off-site in conjunction with DC Habitat that will be set aside for households earning no more than 50 percent of the area median income (AMI). In addition, 4 percent of The Highline’s units will be reserved for households earning no more than 80 percent of AMI. United Bank and EB5 Capital provided construction financing for the project, and MAC Realty Advisors assisted the venture in acquiring development financing.
WASHINGTON, D.C. — Carr Properties has acquired 1875 K Street, a 99 percent-leased, 190,345-square-foot office building in Washington, D.C.’s central business district. The company purchased the Class A building from Shorenstein Properties. The sales price was undisclosed, but Washington Business Journal reports that Carr Properties purchased the 12-story building for $150 million. Completed in 2002, 1875 K Street is located at the corner of 19th and K streets and is anchored by tenants including Willkie Farr & Gallagher LLP, WeWork, Stroock & Stroock & Lavan LLP and Shipman & Goodwin LLP. The building features 14,000- to 17,000-square-foot floorplates, ceiling heights exceeding 9 feet, an enclosed penthouse with an adjoining roof terrace and a 4,000-square-foot fitness center. Carr Properties will manage property management and leasing services. Eastdil Secured’s Washington office represented Shorenstein Properties in the transaction.
WASHINGTON, D.C. — Tishman Speyer has completed a 16-year lease with global law firm Paul Hastings LLP for 97,000 square feet of office space at 2050 M St. in Washington, D.C. The 11-story, 364,000-square-foot trophy office building is currently under construction with an expected delivery date of 2020. The law firm will occupy the top three floors plus additional space. Designed by Joshua Prince-Ramus of REX, the office building will feature floor-to-ceiling curved glass and offer amenities such as a fitness center, bicycle storage room with lockers, a rooftop terrace and four levels of parking. The office building will be located on the existing site of the Washington bureau for CBS and will feature new facilities for CBS with a separate entrance.