Carr Properties Offering 49% Stake In Midtown Center At $1B Valuation

The Midtown Center development in D.C., where Fannie Mae is headquartered.
Bisnow/Jon Banister
The Midtown Center Development In D.c., Where Fannie Mae Is Headquartered.

Carr Properties is looking to raise hundreds of millions in capital by selling a stake in the massive Downtown D.C. headquarters it built for Fannie Mae.

The developer retained JLL to seek a buyer for a 49% stake in the Midtown Center development at 1100 15th St. NW, Real Estate Alert reports. A JLL spokesperson confirmed the assignment to Bisnow.

The 49% stake is valued at roughly $490M, according to Real Estate Alert, making it the largest offering in the D.C. market since the coronavirus pandemic began. The project cost around $650M to build, and Carr is valuing it at roughly $1B.

The two-building, 869K SF office development, built on the site of the former Washington Post headquarters, delivered in mid-2018. Fannie Mae leased 752K SF of the project in 2015, the largest private sector lease in D.C. history. WeWork signed a 110K SF lease at the building in 2019.

The property backs a $525M loan originated last year that expires in 2029, and Fannie Mae's lease runs until 2033, according to Real Estate Alert.

Designed by SHoP Architects and WDG Architecture, Midtown Center stands out in Downtown D.C. with its glass and copper facade and its three elevated walkways that connect the two buildings.

The project features 44K SF of ground-floor retail, where Carr has signed multiple restaurant tenants including a Greek concept from Michelin-starred chef Nicholas Stefanelli and a Louisiana-style restaurant from chef Kyle Bailey. It also has a public courtyard and a network of alleys connecting it to the surrounding streets.

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