MRP Pays $20M For 275K SF Capitol Hill Office: The D.C. Deal Sheet
MRP Realty has acquired an office building near Union Station in the latest example of a D.C. office property selling for a fraction of its former value.
The D.C.-based developer bought the 275K SF office building at 10 G St. NE from the American Psychological Association, D.C. deed records show.
The deed lists the consideration amount as just under $70M, but the Washington Business Journal reports that number is actually the building's latest assessed value. The price MRP paid was actually less than 30% of that — a source familiar with the deal told Bisnow the sale price was around $20M.
The local developer obtained a $5M loan from Fidelity National Title Insurance Co. along with the purchase, deed records show.
APA has owned the building since it was developed in the 1990s, but it leases it out while maintaining its headquarters next door at 750 First St. NE. The building appears to be nearly half empty, with Cushman & Wakefield listing 126K SF as available.
MRP is one of several local investors that are pouncing on the discounted pricing for office properties in the region. It also acquired a four-building office complex in Bethesda in August for $28M.
SALES
Peter N.G. Schwartz sold three Prince George’s County apartment buildings that it developed to a joint venture of 29th Street Capital and Willton Investment Management. The price for the 1,225-unit portfolio was undisclosed, but a spokesperson for the firm that brokered the deal, Colliers, said the buyer obtained a $232.7M loan from Fannie Mae for the deal.
The properties are the Ascend Apollo building in Largo and the Allure Apollo and Aspire Apollo buildings in Camp Springs. Colliers' Shahin Yazdi and Jonathan Lee arranged the financing for the buyer, and CBRE represented the seller.
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Data center developer Cologix acquired the Beaumeade Corporate Park in Ashburn from Merritt Properties for $375M, the Washington Business Journal reports. The Denver-based company had announced earlier this month that it acquired a site to expand its digital infrastructure footprint, but it didn’t specify the location. Deed records reported by the WBJ show it closed two transactions for properties spanning around 40 acres on Guilford Drive — equating to more than $9M per acre.
FINANCING
Developer MCB Real Estate is in line to receive Montgomery County's inaugural tax increment financing deal. The Montgomery County Council on Tuesday approved the creation of a special development district that allows the county to enter into a TIF deal for MCB's Viva White Oak development, Bethesda Today reported.
The county and MCB in May proposed the TIF deal, through which MCB could receive up to $420M in infrastructure bonds for the $2.8B project. The 280-acre site near the Food and Drug Administration’s White Oak campus is planned to span more than 12M SF of mixed-use development.
LEASES
Dick’s House of Sport has signed on to open in the former Lord & Taylor space at Tysons Corner Center, the Washington Business Journal reports. The retailer filed plans to convert the 194K SF department store building into its experiential concept, which typically includes space for recreational activities like rock climbing. Mall owner Macerich had previously planned to replace Lord & Taylor with a mixed-use tower.
PERSONNEL
Bernstein Management Corp. added two executives to its leadership team. The D.C.-based real estate investor hired Aaron Herman from JBG Smith to be its general counsel, and it brought on Bo Sauter from Rappaport to serve as senior vice president of accounting and finance, it announced Thursday. The company said these moves will strengthen its operations as it expands its portfolio throughout the D.C. region.
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Roadside Development named its inaugural president to lead its expansion “beyond the DMV.” The local developer, best known for D.C. mixed-use projects City Ridge and City Market at O, announced it elevated partner Jeff Edelstein, who has been with the company since 2007, to the new role. Founding partner Richard Lake will remain in his leadership role.
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Victor Hoskins is leaving his role as head of the Fairfax County Economic Development Authority this fall for an unspecified private sector job, the organization announced Monday. Hoskins has led FCEDA since August 2019. Before that, he led economic development in Arlington County when it landed Amazon HQ2, and he served as D.C.’s deputy mayor for planning and economic development under Mayor Vincent Gray.
