WASHINGTON, D.C. — The U.S. Census Bureau reports that overall retail sales in June rose 0.2 percent from May and 1.5 percent from June 2022. Barron’s and other media outlets are reporting that economists had previously forecasted that June sales would grow 0.6 percent from May. The Wall Street Journal reports that the retail sector’s three consecutive months of positive sales activity can be attributed, in part, to inflation easing. The Consumer Price Index, the U.S. Bureau of Labor Statistics’ leading indicator for inflation, rose at an annualized rate of 3 percent in June, the lowest figure since March 2021. The National Retail Federation (NRF), a Washington, D.C.-based advocacy organization for the retail industry, expects the momentum to carry into July as consumers shop for back-to-school items. “Back-to-class spending is one of the most important shopping occasions of the year, and NRF’s consumer research shows that back-to-school and college spending is expected to set new records,” says Matthew Shay, president and CEO of NRF. “Consumers are looking for the best value and deals, and retailers are well-stocked with essential items for families and students.” The NRF’s own calculation of retail sales excludes automobile dealers, gas stations and restaurants in order …
WASHINGTON, D.C. — Texas A&M University has signed a 23,000-square-foot office lease expansion at 1620 L Street, a 171,000-square-foot office building in Washington, D.C. The university, which first signed on at the building in 2020, now occupies approximately 70,500 square feet. Doug Mueller, Evan Behr, Nathan Beach and Thomas Myers of JLL represented the landlord, DivcoWest, in the lease negotiations. Doug Damron and Chris Lucey of Newmark represented Texas A&M. Texas A&M uses 1620 L Street as a “beachhead” location for students in the D.C. area. The building houses the university’s Bush School of Government and Public Service and includes classrooms, conference rooms, study lounges, collaborative/huddle rooms, an admissions center, catering kitchen, snack and beverage stations and a 150-seat theater/lecture hall.
WASHINGTON, D.C. — Nonfarm employment in the United States increased by 209,000 jobs in June, according to the Bureau of Labor Statistics (BLS). The total, which is the lowest figure since December 2020 when jobs fell by 268,000, fell below estimates from economists surveyed by Dow Jones, who had predicted the economy to gain 240,000 jobs last month, according to CNBC. The unemployment rate also ticked down 10 basis points to 3.6 percent. The BLS reports the unemployment rate has ranged from 3.4 to 3.7 percent since March 2022. The June gains were nearly 100,000 fewer than the May total, which the BLS has revised down to 306,000 jobs. The BLS also revised down employment for April, with the two months combining for 110,000 fewer jobs than previously reported. Job gains for 2023 have averaged 278,000 jobs per month, which is a 43.5 percent decline from the average monthly gains of 399,000 jobs in 2022. For June, the government added 60,000 new jobs, most of which was concentrated at the state and local levels. The figure is about average for government job gains in 2023 (63,000 per month) and was the leading employment sector for the month. Government employment is …
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Rising Interest Rates Take Toll on Fannie, Freddie Deal Volume
The multifamily divisions of Fannie Mae and Freddie Mac are off to a slow start this year as the government-sponsored enterprises (GSEs), their network of lending partners and multifamily borrowers contend with rising interest rates. Fannie Mae’s volume of new multifamily business totaled $10.2 billion in the first quarter of 2023, which is a 36 percent decrease from the same period a year earlier when the agency closed $16 billion. Freddie Mac closed $6 billion in new multifamily business in the first quarter, a year-over-year decrease of 60 percent. Seasoned agency lending professionals all point to elevated borrowing costs as the primary reason for the two agencies closing less business thus far in 2023. “The rapid increase in rates across the board has really been a shock to the industry,” says Vic Clark, senior managing director and head of conventional multifamily production at Lument. At its May meeting, the Federal Open Markets Committee raised the federal funds rate to a target range of 5 to 5.25 percent. The fed funds rate is the interest rate that U.S. banks charge each other to lend funds overnight. This time a year ago, the short-term benchmark rate was at a range of 0.75 …
WASHINGTON, D.C. — The District of Columbia Housing Finance Agency (DCHFA) has provided $63.2 million in tax-exempt bonds for the rehabilitation of Worthington Woods Apartments in the Washington Highlands neighborhood of Washington, D.C. Originally built in 1944 and renovated in 2002, the property comprises 394 affordable housing apartments. The Worthington Woods Tenants Association acquired the building and selected Montgomery Housing Partnership Inc. and the Anacostia Economic Development Corp. to oversee the $133.6 million overhaul. The DCHFA also underwrote $45.5 million and $9.1 million in federal and local Low Income Housing Tax Credit (LIHTC) equity for the preservation of the affordable apartments. Additionally, the D.C. Department of Housing and Community Development is providing a $38.8 million loan from the Section 108 Loan Guarantee Program for this project. Following the redevelopment, Worthington Woods will feature units in one-, two- and three-bedroom layouts reserved for residents earning 30, 50 and 60 percent of the area median income (AMI). Amenities will include a playground, community room, laundry facilities, onsite tenant services and 156 parking spaces. Communities Together Inc. will provide resident services to tenants.
WASHINGTON, D.C. — Tishman Speyer has secured a $150 million construction loan to fund the mixed-use redevelopment of Mazza Gallerie, an obsolete, three-story shopping mall in Washington, D.C.’s Friendship Heights neighborhood. The mall closed its last store this past Christmas, according to local media reports. RBC Capital Markets provided the financing. The reimagined development will comprise 320 rental apartments and 90,000 square feet of retail space, including 20,000 square feet of new ground-level retail space fronting Wisconsin Avenue. Tishman Speyer will maintain the mall’s 70,000-square-foot retail concourse that will once again be anchored by T.J. Maxx. The redevelopment will also maintain over 800 parking spots across four below-grade levels. Demolition of the existing structure is underway, and completion of the residential portion and first wave of new retail openings is anticipated for 2025. The project’s design-build team includes general contractors Davis Construction and Smoot Construction and architects 3XN and Eric Colbert & Associates (architect of record).
WASHINGTON, D.C. — JLL has arranged the sale of The Shay, a 245-unit apartment community located at 1924 8th St. NW in Washington, D.C.’s Shaw neighborhood. Robert Jenkins and Bret Thompson of JLL represented the seller in the transaction. The buyer, seller and sales price were not disclosed, but multiple media outlets have reported that an affiliate of Bernstein Management purchased the asset from Dweck Properties. Built in 2015 about three blocks from the Shaw-Howard University Metro station, The Shay features studio, one- and two-bedroom units with floor-to-ceiling windows, nine-foot ceilings, stainless steel smart appliances and quartz countertops. Community amenities include a heated pool with sundeck, two landscaped rooftop decks with seating and grills, catering kitchen and dining area and a fitness center.
WASHINGTON, D.C. — Whole Foods Market plans to open a new 47,000-square-foot store as part of the Parks at Walter Reed development in northwest Washington, D.C. The store, which will open on June 28, will anchor the 3.1 million-square-foot redevelopment of the historic, 66-acre Walter Reed Army Medical Center. The new Whole Foods will be located at 7130 12th St. NW in The Hartley apartment building. The grocer signed the lease with the ownership group — Hines, Urban Atlantic and Triden Development — in 2019. Whole Foods currently operates more than 500 stores in the United States, Canada and the UK.
WASHINGTON, D.C. — Nonfarm employment in the United States increased by 339,000 in May, according to the Bureau of Labor Statistics (BLS), with broad-based gains led by the professional and business services sector. Economists surveyed by Dow Jones in advance of Friday’s report had expected job gains of 190,000 in May. The professional and business services sector added 64,000 jobs in May, followed by government (+56,000), healthcare (+52,000), leisure and hospitality (+48,000), construction (+25,000), transportation and warehousing (+24,000), and social assistance (+22,000). The total number of private-sector jobs added for the month was 283,000. The unemployment rate increased from 3.4 percent in April to 3.7 percent in May, and the number of unemployed persons rose by 440,000 to 6.1 million. In May, average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents, or 0.3 percent, to $33.44. Over the past 12 months, average hourly earnings have increased by 4.3 percent. “Despite the increase in job growth, two data points in this report show signs of somewhat weaker labor demand,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association (MBA), in a prepared statement. “Wage growth has slowed to 4.3 percent over the past 12 months, and the …
WASHINGTON, D.C. — Urban Atlantic, Triden Development Group, Hines and joint venture partner Bridge Investment Group have opened Common Clover, a fully furnished, 248-room co-living building in Washington, D.C. Situated within The Parks at Walter Reed, a 66-acre mixed-use redevelopment, the property features suites with two to five private bedrooms, fully stocked kitchens, multiple bathrooms and in-unit laundry. Amenities include coworking space, a library, rooftop deck, courtyard with grilling stations, fitness center, game room and club lounge with a bar. The building also includes 21,000 square feet of ground-floor retail space. Rental rates start at $1,207 for a 116-square-foot studio, according to Apartments.com.