If you don't see images, click here to view
Story Ideas  Events 
     |      Forward to a Friend
To ensure delivery, please add mark@bisnow.com to your address book, learn how
Real Estate Bisnow
October 23, 2008
The Deal Sheet
(our more serious side)

Investment Sales

The American Society of Hematology has purchased 2021 L St for $50.9 million, or $675.74/SF. It acquired the 10-story, 75,457 SF building from private investors led by Mark Rivers of Potomac Development Partners. Geoffrey Kieffer from Woodmark Commercial Services represented the owner; the Society was repped by Paul Ehrenreich of Cresa Partners. It plans to occupy the top five floors by the second half of ’09, after tenant improvements are complete. The lower five floors will be leased.

The building last traded hands in June ‘07 when the NFL Players Association sold it for $24.3 million. 2021 L Street Investors intended to turn it into office condos after an extensive rehab, which included an additional two stories as well as new systems and a façade. Marketing of the condos had begun until the Society appeared on the scene


The District has narrowed its list of potential developers for the two properties it owns at 4th and E streets SW to three teams: JLH Partners, Chapman Development, and CDC Cos.; Trammell Crow, CSG Urban Partners, and Michele Hagans; and E Street Development Partners LLC, which consists of Potomac Investment Properties, City Partners and Adams Investment Group. The team’s proposals include office space ranging from 102k SF to 465k and a hotel. All three bids rehabilitate Fire Engine Co. 13, which is located on the plots, and include ground floor retail. One bidder proposed an 11k SF, atrium-covered public indoor park. The winning team may be selected as early as December with groundbreaking tentatively scheduled for 2010.


Increasingly, private equity funds and institutional investors have been investing in debt – mezzanine especially – thanks to the favorable risk-adjusted returns such paper offers. FCP can now count itself among this group. The firm has closed a $230 million private equity fund; levered, it should yield between $800 million to $900 million of purchasing power. Hard assets – such as value-add multifamily – are still in the company’s sites and may well be acquired through this fund. However, for the first time FCP will be targeting debt paper, using this fund as a vehicle. Other investment activities may include bridge financing and possibly senior debt.

Miller & Smith   Goulston & Storrs



Dept. of Interior’s U.S. Fish & Wildlife Service has renewed its 138k SF lease at Arlington Square -- or 4401 North Fairfax Drive -- for five years. Marcy Owens Test of JLL represented the building’s owner, Federal Acquisition Partners. It’s the sole occupant in the building.


Schnader Harrison Segal & Lewis has signed a 13,533 SF long-term lease to relocate and expand its DC headquarters to the Victor Building at 750 9th Street—a 35% increase in the space it’s currently occupying at 2001 Pennsylvania. Studley’s Executive Managing Director Steve London represented Schnader in the transaction. Scott Frankel, Roberta Liss and Scott Russi of CB Richard Ellis represented the building’s landlord, Brookfield Properties.


National Wildlife Federation is leasing over 12k SF of space in Pew Charitable Trusts’ headquarters at 901 E Street, NW. In partnership with the District, Pew has dedicated most of its building to housing nonprofits.


Figures for the DC area’s performance in Q3 have been compiled. Not surprisingly, the economic slowdown is reflected in leasing and sales activities. Total office sales volume in Q3 registered $427.9 million, a sharp drop from Q2’s $1.5 billion sales volume, according to GVA Advantis.  For the first nine months of the year, $2.9 billion closed. Leasing, meanwhile, was essentially flat for Q3, CBRE reports. In DC, net absorption slowed with 69,574 SF taken off the market. Northern Virginia saw 179,586 SF of net absorption. Suburban Maryland, for its part, posted negative absorption for the second straight quarter -- although not as much as in Q2.  After 581,405 SF came back to the market last quarter, only 92,968 SF returned in Q3


HFF’s Bill Asbill, Bob Donhauser and Cary Abod placed $36 million in financing for 1401 K on behalf of Guardian Realty Investors with AIG Investments. Proceeds from the five-year, fixed-rate financing were used to acquire the property and establish reserves for future tenant improvements, leasing commissions and capital expenditures.  HFF will service the loan.


WRIT has named William Camp EVP and CFO, effective Nov. 12. He will succeed Sara Grootwassink, who is leaving the firm to relocate to the West Coast. She will remain in her position until the end of February. Camp was most recently VP, assistant director of equities, at Wachovia Securities LLC.


John Norjen is COPT’s new managing director of investments – a new title for the REIT. Norjen has worked for Jones Lang LaSalle, CB Richard Ellis and Eastdil Secured.


Chuck Claar is the new VP of business development at Hubert Construction. He joins from Buchanan Partners, where he was Land Design Manager.


Cassidy & Pinkard Colliers recently won two mandates: PREI has selected it to provide property management services for 1800 M. Bill Grillo and Laurie McMahon will oversee that account. It will also be providing leasing and property management services to the John Buck Company at 1620 L. Mark Sullivan, Darian LeBlanc, and Phillip Thomas will handle marketing and leasing; Grillo and McMahon will oversee property management.


CONTACT EDITORIAL                             CONTACT ADVERTISING                              CONTACT GENERAL INFO

This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified above. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. ? 2008, Bisnow on Business, Inc., 1323 Connecticut Avenue, NW Washington, DC 20036. All rights reserved.

| Subscribe | Forward to a Friend
Legal Tech Association Women Medical The Scene