WASHINGTON, D.C. — In two separate releases, co-developers Hoffman & Associates and Madison Marquette have announced that they sold their stake in The Wharf, a 3.5 million-square-foot mixed-use destination in southwest Washington, D.C. The Public Sector Pension Investment Board (PSP Investments), a pension fund investor based in Quebec, is now the sole owner of The Wharf, following more than a decade of having a minority stake in the development.
The Wharf was constructed over the course of 15 years by Hoffman & Associates and Madison Marquette. The mixed-use neighborhood features a mile of waterfront development along the Potomac River.
The sales price was not shared in either announcement, but Green Street News reports that Hoffman & Associates and Madison Marquette sold their stake at a $1.8 billion valuation. Previous components at The Wharf have sold in recent years and were thus not included in the sale to PSP Investments, including 300 condominiums, two office buildings and the Willard InterContinental Washington hotel, which Willard Investments purchased and rebranded in 2022.
The Wharf was delivered by the sellers in two separate phases. Phase I opened in October 2017 and included three hotels, two multifamily and condominium buildings and 210,000 square feet of retail, restaurant and entertainment space. Phase II opened in 2022 and featured 625,000 square feet of Class A office space; 255 apartments; 96 condominium units; 131 hotel rooms; 109,000 square feet of retail and restaurant space; a 1.5-acre park; two underground parking garages with more than 1,000 spaces; and 223 slips at The Wharf Marina, including rentals for boats, paddle boards and kayaks, as well as water taxis and tour boats.
Notable tenants at The Wharf include bartaco, Ben & Jerry’s, Fogo de Chao, Gordon Ramsay Fish & Chips, Kirwan’s on The Wharf, Mason’s Famous Lobster Rolls, Mi Vida, Pink Tiger, Shake Shack, Starbucks Coffee, Tiki TNT, Whitlow’s DC, Union Pie, CVS, Goddard School, Spa Pendry, Lip Lab and The UPS Store.
“Madison Marquette’s vision for The Wharf, built and brought to life over the past 15 years, succeeded in completely reimagining an important under-utilized area of the city’s riverfront,” says Amer Hammour, chairman of Madison Marquette. “We wish the project continued success and take special pride in the fact that the local team managing the property is made up of Madison Marquette executives whom we trained and internalized in the project.”
“After nearly 20 years of building and leading this incredible development, The Wharf is now a thriving community and globally recognized destination,” adds Monty Hoffman, founder and chairman of Hoffman & Associates. “Every project we undertake follows a strategic hold plan, and for The Wharf, the time has come for a change in our role. We have full confidence in our partner to carry forward our shared vision for The Wharf as we continue expanding communities across the DMV and beyond.”
Hoffman & Associates is a mixed-use development firm active in the Mid-Atlantic. The company is currently developing the 10-acre West Falls development in Falls Church, Va., the final phase of Seaboard Station in downtown Raleigh and the $200 million Parcel B mixed-use development at Audi Field, home arena of the D.C. United MLS club team. Hoffman & Associates has offices in Washington, D.C., and Raleigh.
Madison Marquette, a member of the Capital Guidance group of companies, is a private real estate investor, investment manager and developer whose national headquarters is located at The Wharf. Other notable developments by Madison Marquette include the Asbury Park Boardwalk redevelopment in New Jersey and Oxbow Public Market in Napa, Calif.
Last year, the firm sold its retail platform and 6.1 million-square-foot management portfolio to Avison Young, which had previously purchased Madison Marquette’s office and industrial property management, agency leasing and project management service lines.
PSP Investments, one of Canada’s largest pension investors, manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. The Quebec-based entity was established in 1999 and had C$264.9 billion of net assets under management as of March 31, 2024.
— John Nelson