MayfieldGentry Realty Advisors in Detroit has made its first DC acquisition: 1522 K, which it acquired for $30 million. The 11-story, 81,094 SF building is 89% leased to 30 tenants including Atelier Architects, the National Sleep Foundation and R.E. Bushnell & Law Firm. CEO Chauncey Mayfield says the company plans to bring the class B building up to class A status by upgrading its systems and making cosmetic improvements.
Sumitomo has acquired 1750 K from Bernstein Cos. for $76 million in cash. Jim Meisel at HFF brokered the sale of the 152,470 SF building. “It was a great fit for both parties,” he told us this afternoon. Sumitomo, which has not been active in the DC market for a while, is re-entering it with a solid CBD asset. “And Bernstein got a great price.” The building is fully leased, he adds, another plus, although hardly surprising for the submarket.
University of Maryland's Earth System Science Interdisciplinary Center has inked a 41,500 SF lease at 5825 University Research Court in College Park, a four-story, 116,000 SF office building nearing completion in the University's M Square Research Park. Center staff will be moving into the building in May. Manekin and COPT are developing, leasing and managing the 124-acre park, which will have 750,000 SF of new office space -- eight buildings altogether -- when fully built out. Phase I of the project will deliver 3 buildings totaling an estimated 315,000 SF.
Canyon-Johnson Urban Fund and Donatelli Development have secured $53 million in construction financing from Citi Community Capital for a residential-retail building in Petworth called Park Place. A seven-story building, the $71 million development will deliver in July 2009. Of the 161 residential units it will have, 20% will be affordable--an important component for any investment Canyon-Johnson makes.
This particular project has been on DC's radar for some time, Quincy Allen, Canyon-Johnson's senior director of Acquisitions, says. "Mayor Fenty is a big supporter of it." And in general, he adds, there is a lot of momentum in the District for public-private partnerships. "This deal hit a lot of the right notes for all of us," Allen says.
Another right note was the underwriting. The numbers work for both rental and for-sale housing, he says. It is one of Canyon-Johnson's investment tenants -- and it certainly helps with securing financing these days as well.
Allen says the fund is always on the lookout for other DC projects. "We are looking at several other mixed-use projects with a rental component."
Opus East expects to deliver 1015 Half St, SE by April 2010. The company has just broken ground on the $200 million, 400,000 SF, 10-story building. It has also tapped Cassidy & Pinkard Colliers' Phillip Thomas Jr., Mark Sullivan and Darian LeBlanc as brokers. The building is being designed to Silver LEED specs -- and might wind up with a Gold certification when its complete, Steve Cohen, VP of real estate for Opus East, says.
What's next for the firm? According to Cohen "there are a couple of opportunities in NW that we are tracking closely." By tracking closely, he means offers have been made. Both are development opportunities for office projects that would be 300,000 SF each, give or take.
The District is seeking a partner to redevelop three properties at 3813, 3815 and 3825-29 Georgia Ave. NW. Responses are due this summer with the winning bidders selected early this fall.
There is a $170 billion annual funding gap in infrastructure investment in this country, according to a newly released report by the Urban Land Institute and Ernst & Young.
In our last issue we misidentified Michael Ward. He is restarting development for Grosvenor.