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January 4, 2011  
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Top 10 Deals of 2011:
Part Two

Congressman Gerry Connolly headlines our next event, a look at Tysons Corner: The Next US City. See what's happening this year and in the year 2050. And probably sometime in the middle too.
Wed, Jan. 18 at the McLean Hilton. Sign up today.

Yesterday we gave you the top five deals of 2011. Today, the stunning conclusion.
6. Walmart Comes to Washington
Walmart, Fredrick Lutz
The future is filled with big yellow smiley faces—in November, Walmart announced it would open two more District stores than originally planned, bringing the grand total to six. It's the mega-retailer's first foray into the city, and local real estate head Fredrick Lutz (snapped at Bisnow's Annual Retail Summit) says stores here will have smaller SF footprints and slightly different merchandising than others. Where it's taking space: Skyland (a story unto itself), Fort Totten Square, Bladensburg Road NE, Georgia Avenue NW, New Jersey Avenue NW, and East Capitol Street SE. (It's also building a new store across the river in Tysons.)
7. HHS Stays at Parklawn
After spending over three years fighting for a renewal, Parklawn deserves a party. (Prediction: After a multi-year battle, they'll decide to host it at Dave & Buster's.) In August, following several legal challenges by competing landlords, the GSA re-awarded the Dept. of Health and Human Services' 935k SF requirement to JBG's Parklawn Building in Rockville. News of federal belt-tightening only intensified competition for the lease, indicating that legal wrangling over government deals isn't likely to cease soon. In other news: Sources tell us FBI's HQ requirement is headed to a government-owned site, taking private owners out of the picture. (For now.)
8. WRIT Sells Industrial
WRIT, Bill Camp
Washington Real Estate Investment Trust officially completed its warehouse exit in November, with the final phase of its $350M local industrial portfolio sale to a JV between AREA Property Partners and the Adler Group. After the deal closed, WRIT CFO Bill Camp told us the REIT is buying other asset types to balance its portfolio and will increase its multifamily, retail, and medical office holdings over the long term.
9. New Office at 1200 17th
1200 17th St.
Thanks to Herman Cain, you probably heard more about 1200 17th St. (also known as the Nat'l Restaurant Association HQ) this year than any other DC office building. But that's not the only reason it's famous—in January, First Potomac and Akridge announced they'd purchased the 85k SF building for $39.6M, with plans to tear it down for a new 170k SF trophy office. First Potomac owns a majority stake in the building, and Akridge will also provide development, leasing, and property management services. Construction is expected to start sometime this year.
10. Kiplinger Hotel Conversion
1729 H St.
In July, OTO put down a deposit for 1729 H St. (home to the Kiplinger media empire for 50-plus years) for around $16.5M, with the intention of transforming it into a 116-key Hampton Inn. Construction starts this year, with completion expected in early 2013. (Sources tell us the hotel operator's goal is for it to be operational before the presidential inauguration.) The deal officially closes this month; Kiplinger headed to new space at Franklin Square North last month, which is also home to the AP, Thomson-Reuters, and Hearst TV.
Honorable Mentions
There were more than 10 great deals last year. Honorable mentions: JBGR's kick-off of Tysons West; Penzance's acquisition of the Watergate Office Building; View 14 setting a DC multifamily price/SF record; The $100M purchase of the St. Regis Hotel by Westbrook Partners; Mitsui Fudosan America's purchase of a majority stake in the Homer Building; and construction starting on Comstock Partners' Reston Station.

State Department Signs at World Bank
600 19th St
The Washington Post reports that the State Department has signed a 463k SF lease at 600 19th St., owned by the World Bank. It will consolidate employees from five buildings with expiring leases, as well as relocating employees from three Bureau of Consular Affairs offices. (In all, it'll house 1,877 employees there.) The agency will pay $48.83/SF in rent.

Capitol Hill Retail Sale
Transwestern, Gerry Trainor
Yesterday, Transwestern announced the purchase of Jenkins Row Retail on Capitol Hill by Edens & Avant from JPI. The 50k SF mixed-use project is 90% leased to Harris Teeter, which Transwestern's Gerry Trainor tells us is among the chain's best-performing stores, with sales north of $800/SF. “It was a very appealing, due to proven sale figures, its Metro location, and the long-term NNN lease structure secured by a credit tenant,” he says. A source tells us the property traded in the low- to mid-6% cap range.

Carroll Square Hits Market
975 F St
We hear that HFF is marketing Carroll Square (975 F St.) for sale. The 10-story, 178k SF building is 100% leased with no significant rollover until 2017; major tenants include Seyfarth Shaw, Holland & Hart, and Fitzpatrick, Cella, Harper & Scinto. (Our source describes it as "AA.") It has a 99-year ground lease on a half-acre parcel owned by the Catholic Church and comes with $66M in assumable debt from MetLife.
What's your new year's resolution? Tell mike.leon@bisnow.com.
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