Monument Realty and 7K Investments have purchased a 157K SF office building two blocks from the White House, with plans for a large-scale renovation.
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The partners paid $37.5M for the property at 1775 Pennsylvania Ave. NW and secured a $52M acquisition loan from Harbor Group International, D.C. deed records show. The seller was an affiliate of Tishman Speyer, the Washington Business Journal reported.
The new owners plan to “undertake a major repositioning,” they said in a release, including reimagining the exterior facade, redesigning the lobby, executing building systems upgrades and creating an amenity package with conference rooms, gathering spaces, a fitness center and outdoor terrace space.
“Pennsylvania Avenue is one of the most recognized streets in the nation, and 1775 Penn has the location and physical characteristics to be one of its premier office buildings,” Monument Realty founder Michael Darby said in the release. “Our renovation will transform the property and position it to compete at the highest level of the Washington office market.”
SmithGroup has been hired for design services. The building has 77,800 SF available for lease, including the top four floors. Monument plans to manage and lease the property. Lantern Real Estate Advisors + Partners arranged the loan, and Eastdil Secured represented the seller.
SALES
Peterson Cos. purchased a 103K SF property at its mixed-use Rio development in Gaithersburg, the developer announced this week. A deed posted in Maryland land records shows that Peterson paid $11.1M for the property at 9841 Washingtonian Blvd. and that the seller was Washington Brick and Terra Cotta Co. LLC. Peterson’s release said the seller was represented by Hyatt Commercial’s Cecil Cummins, Eric Pinkett and Owen Wellschlager.
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Montclif, a new Chevy Chase-based investment firm, and institutional partner FCP bought Hamilton Square, a 278K SF office building near the White House. The joint venture paid $126M for the property at 600 14th St. NW, according to D.C. deed records and a company press release Monday. Records show that the partnership also secured an $84.6M loan from Athene Annuity and Life Co., a subsidiary of Apollo Global Management. The seller was CommonWealth Partners, which purchased the property for $198M in 2012, according to deed records.
FINANCING
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Stonebridge, Criterion Real Estate Capital and the Bernstein Cos. secured new equity and debt for their 434-unit office-to-residential project in downtown D.C. A company that shares an address with the Florida State Board of Administration and is managed by MetLife Investment Management purchased a 72% stake in the project at 1999 Eye St. NW, the Washington Business Journal reported. The consideration listed is $58.7M. The project also received a $175.6M construction loan from Kennedy-Wilson Capital.
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One Street Commercial Properties secured financing for an office-to-condo conversion on Georgetown's waterfront. The local developer is turning the 70K SF office building at 3333 K St. NW, previously home to the Legal Services Corp., into 22 condo units plus ground-floor retail. One Street did not disclose the cost of the project, but the capital stack includes $20.6M in commercial property assessed clean energy, or C-PACE, financing from DC Green Bank and PACE Equity Finance. One Street also secured a $39M loan in August from Hickory CRE Lending, according to deed records, although it is unclear how much of that will go toward construction.
PERSONNEL
A former Brookfield Properties senior vice president has founded a D.C.-based law firm focused on real estate transactions. Eamon Lorincz launched Lorincz Law, he announced on LinkedIn this week, which he says will provide services to owners, developers and investors. He told Bisnow that he is currently working from a home office, and while he may expand in the future, he intends for Lorincz Law to remain a boutique-sized firm. Lorincz served as a Brookfield SVP for five years before departing this summer. Prior to that, he was the deputy general counsel for the Housing Opportunities Commission.
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