Navy Yard Office Building Sells For $28M: The D.C. Deal Sheet
A Navy Yard office building that spans a full block and is 53% occupied sold at a steep discount.
Garfield Investments and Broad Creek Capital scooped up 300 M St. SE, a 285K SF building across from the U.S. Department of Transportation, for $28M, according D.C. deed records.
The seller was Potomac Investment Properties, which developed the property in 2021. A spokesperson for the buyers confirmed to Bisnow that the sale was facilitated on behalf of the lender, Bank of America, which had provided a $66M loan in 2021, according to deed records.
The partnership secured a $14.4M loan from Prime Finance Partners for the acquisition, deed records show. Eastdil Secured's Bradley Allen brokered the sale.
The building’s tenants include CACI International, Greystones Group and Lockheed Martin, according to their websites.
“The Washington Navy Yard has consistently attracted defense-oriented government contractors and businesses requiring proximity and access to Washington’s federal and defense-related sector,” Garfield Investments founder and CEO John Mason said in a release.
SALES
Peterson Cos. has sold one of its Dulles Discovery office buildings in Chantilly to the CIA, the Washington Business Journal reported, citing public records. The federal government paid $246.6M for the 434K SF Dulles Discovery 2 building at 13870 Air and Space Museum Parkway and its adjacent parking garage. The full 1.8M SF Dulles Discovery office campus is mostly, if not completely, leased to the CIA, according to the WBJ.
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JBG Smith sold a 283-unit West End property this week as it continues its strategy of cashing out on multifamily properties. Los Angeles-based JRK Property Holdings purchased WestEnd25 at 1255 25th St. NW, the buyer and seller announced. D.C. deed records show the 2009-built property traded hands for $186M, and JRK took out a $30M loan from Berkadia Commercial Mortgage.
JRK used its $1B Platform 5 Fund for the investment, which the company describes as a “multifamily value-add and core plus vehicle focused on high-quality assets built after 1990 that provide operational or physical repositioning opportunity.” Berkadia’s Brian Crivella, Bill Gribbin and Yalda Ghamarian represented JBG and secured acquisition financing on behalf of JRK.
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JBG Smith also sold a development site in NoMa that has sat idle for more than a decade. July Residential purchased the site, totaling nearly an acre, at the corner of First Street and New York Avenue Northeast for $11M, founder Isaac Pinto told Bisnow. The site is home to an empty, three-story office building and a vacant lot. July Residential intends to pursue JBG’s plan to build a 475-unit building at the site, with some minor changes.
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July Residential also acquired a vacant 36-unit multifamily building near the Takoma Park Metro station, broker Feldman Ruel announced. The seller was Forbright Bank, which foreclosed on the Arbor at Takoma, formerly owned by Neighborhood Development Co., last year. The price was $13.4M, deed records show, and July Residential secured a $10.9M loan from Los Angeles-based Dunmor.
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A defaulted $112M loan on a downtown D.C. office building is set to be purchased for a fraction of the property's value. A joint venture between New York-based investment companies FarmViewVentures and Newbound Holdings is paying $25M to buy the loan backed by 1325 G St. NW, a 305K SF office property, from U.S. Bank, Green Street’s Real Estate Alert reported this week.
The loan sale hasn't been recorded in D.C. deed records. Westbrook Partners took out the loan in 2019 when it paid $175M for the G Street property. Brookfield originated the loan before selling it to U.S. Bank and retaining a mezzanine interest, according to Real Estate Alert. The loan matured in October, and the original balance is unpaid.
LEASES
The Air-Conditioning, Heating, and Refrigeration Institute renewed its 25K SF lease at 2311 Wilson Blvd. in Arlington, landlord Carr Properties announced this week. The deal will keep AHRI on the fourth floor of the 180K SF property until 2038. Carr developed the office building in 2018. Cresa’s Jonathan Harms and Sam Abramson represented AHRI, and Carr’s Kaitlyn Rausse and Ryan Lopez represented Carr.
