MetLife has sold a 360K SF office building near Arlington’s Courthouse Metro station to a developer that intends to transform it into residential.
Quadrangle Development Co. purchased the 1990s-era property at 1320 N. Courthouse Road, Transwestern senior analyst Rowan Miller, who was on the team representing the seller, announced on LinkedIn.
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“A big congratulations to the Quadrangle Development Corporation team for a seamless execution — we’re looking forward to watching this dynamic office-to-residential conversion come to life in the years ahead,” Miller wrote in the post.
He didn't disclose the price, and the sale hasn't appeared in property records. Miller and Quadrangle didn't respond to requests for comment on the deal.
The Washington Business Journal reported in October that MetLife was looking to sell the property, which was 18% leased at the time to three tenants. Transwestern was marketing it as a hotel or residential conversion opportunity.
It was a “lender-driven short sale,” meaning that rather than taking over the property itself, the lender was willing to have the owner sell the property for less than the loan balance and take the proceeds as a loss, the WBJ reported.
Miller's post says the asset received more than 20 offers. He named Transwestern’s Gerry Trainor and Jim Cardellicchio as fellow brokers on the deal.
SALES
Douglas Development paid $28.8M for the 135K SF office building at 1750 H St. NW near Farragut West. The seller was State Farm Life Insurance Co. The building was recently renovated and has a weighted average lease term of 9.7 years, Douglas Capital Markets and Finance Manager Ryan Ferguson told Bisnow.
“We view this acquisition as a compelling opportunity to secure a newly renovated, boutique Class A office asset located just two blocks from the White House,” Ferguson said in an emailed statement.
He worked on the deal with Douglas' Matthew Jemal, Jordan Klinger and Drew Turner, plus Sholom Yaffa of law firm Grossberg Yochelson Fox & Beyda LLP.
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A trio of investors with a stake in a 405K SF office building near the White House purchased the property with a credit bid at a foreclosure auction, Commercial Observer reported. Farallon Capital Management, GreenBarn Investment and FarmViewVentures paid $60.5M for the property at 1625 Eye St. NW, previously owned by Westbrook Partners and American Real Estate Partners. Real Estate Alert reported that the sale valued the property at $140M, 46% lower than its 2019 sale price.
LEASES
Meta inked a 76K SF lease for a Sterling warehouse to support its data centers in the area, the WBJ reported. Chuck Kuhn, local data center mogul and CEO of JK Moving Services, is the owner of the 3-year-old warehouse at 44211 Mercure Circle, where Meta signed for five years with a five-year option. Kuhn also owns several other warehouse properties on the circle.
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Law firm Manatt, Phelps & Phillips is taking 55K SF at D.C.'s most recently completed trophy office building, 17xM, the WBJ reported. Skanska, the developer and owner of the building at 1700 M St. NW, announced a tenant had signed a 14-year term for the space but didn't reveal the company. Skanska delivered the 334K SF tower last year. It is also home to law firm Gibson Dunn & Crutcher, which preleased 164K SF in 2021.
FINANCING
A 52-unit affordable apartment building in Ward 3 received $26.7M for energy-efficient upgrades. DC Green Bank, The Community Preservation Corp., American Housing, Amazon and JPMorgan Chase provided the financing to fully electrify the units at Townley Court at 2315 40th Place NW, as well as add solar panels and electric vehicle charging stations and energy-efficient building upgrades. The efforts are projected to cut the building’s greenhouse gas emissions by almost 10%. The project is expected to be completed in September 2026.
MILESTONES
A renovated and rebranded hotel near D.C.'s convention center opened this week. Frontier Development & Hospitality Group and Basis Investment Group turned the former Cambria Hotel at 899 O St. NW into a 184-room Hyatt House. The hotel is operated and managed by Donohoe Hospitality Services. Amenities include a gym and complimentary breakfast bar, and it is poised to welcome a 157-seat rooftop bar and lounge this fall. Frontier founder Evens Charles told Bisnow in August that the project was expected to cost $10M.
