The Wharf's Developers Sell Their Stake At $1.8B Valuation

The developers that brought a 3.5M SF mixed-use project to D.C.'s waterfront have sold their interest in the property. 

Hoffman & Associates and Madison Marquette have sold their stakes in The Wharf to PSP Investments, the developers announced in separate press releases Monday. 

The companies didn't share the price of the stakes they sold, and it hasn't yet appeared in property records, but Bisnow and others have previously reported a deal was in the works that values the property at $1.8B. 

The deal gives PSP full control over a majority of The Wharf, but it doesn't include some parcels, including a hotel developed under a different partnership and condos and office suites that were sold separately.

Canadian pension fund PSP has been a minority investor in the development since 2014, when it provided $220M in equity that allowed the first phase to begin construction. 

A PSP spokesperson said in a statement that the company decided to acquire the remaining stake in The Wharf because it believes it will generate strong returns.  

“Gaining full control also enables us to directly manage the business plan moving forward in accordance with our strategy,” the spokesperson said. “PSP Investments’ long-term goal will be to continue to improve the importance of The Wharf within its community, optimize operations, and improve the placemaking experience.”

Hoffman founder Monty Hoffman, the original developer that started working in 2006 to develop the mile-long stretch of waterfront, said this deal marks “the successful completion” of the project. 

“After nearly 20 years of building and leading this incredible development, The Wharf is now a thriving community and globally recognized destination,” Hoffman said in a statement. “Every project we undertake follows a strategic hold plan, and for The Wharf, the time has come for a change in our role. We have full confidence in our partner to carry forward our shared vision for The Wharf as we continue expanding communities across the DMV and beyond.” 

Madison Marquette Chairman Amer Hammour, whose firm came on as a partner in 2010 and helped secure PSP as an investor, said the project has leased up well, drawn hundreds of concerts and events, and has “reestablished Washington DC as a waterfront city and destination.”

“We wish the project continued success and take special pride in the fact that the local team managing the property is made up of Madison Marquette executives whom we trained and internalized in the project,” Hammour said in a statement. 

The District Wharf Properties entity that has managed and leased the project will continue to do so under the new ownership, CEO Andrew Son said in a statement.

The development delivered in two phases in 2017 and 2022. It includes four hotels, 1,400 residential units, 1M SF of office space, dozens of restaurants and retailers, three live music venues, and open space and piers jutting out over the waterfront.

Hoffman has experienced executive leadership changes since building The Wharf. Mark Dorigan took over for Hoffman as CEO in late 2019, and then he was replaced in June 2024 by Brian Dawson, who was there for less than six months before quietly leaving in October for a Tennessee-based firm. 

In its release, Hoffman highlighted that it has been focused on a pair of major mixed-use projects in Falls Church, Virginia, and Raleigh, North Carolina. It is also planning a development near Audi Field in D.C. 

“This marks the next chapter for Hoffman & Associates, building on our legacy of creating vibrant, mixed-use communities in new areas,” Hoffman said in the release. 

UPDATE, APRIL 29, 4:10 P.M. ET: This story has been updated with a statement from a PSP spokesperson.