Special Servicer Taps New Brokers To Lease Mostly Vacant Carr Building: The D.C. Deal Sheet
A new leasing push is underway for a massive downtown office building that is more than half vacant.
Cushman & Wakefield was tapped to manage the leasing at Carr Properties’ 1615 L St. NW, the brokerage announced this week. The 430K SF building has 300K SF available for lease, according to Cushman.
The brokerage was retained by the special servicer that is managing the asset. The building previously had Avison Young as its leasing manager, according to a source familiar with the leasing situation.
Constructed in 1984, the downtown D.C. building also serves as Carr's headquarters.
Cushman & Wakefield Vice Chair Michael Katcher said 1615 L is “exceptionally well-positioned to meet the expectations of today’s discerning tenants,” citing $30M in upgrades it has received since 2018.
“We’re excited to launch our marketing campaign and welcome the next generation of businesses to the property,” he said in a statement. He is leasing the building along with C&W's Mark Wooters and John Skolnik.
The $134M CMBS loan on the property has been in special servicing since August 2023, and Carr is delinquent on the loan, which matured that September.
The building was marketed for sale late last year, according to special servicer commentary in Morningstar Credit's database. But no sale occurred, and the commentary said a sale will be “revisited after further leasing efforts and after the current volatility of the DC office market becomes more predictable.”
SALES
Foulger Pratt is in the process of acquiring a $447M multifamily portfolio in the District from AvalonBay Communities, Bisnow first reported this week. It has already completed the acquisition of three properties — one in Gallery Place and two in NoMa — and is under contract for a fourth on H Street. The portfolio totals 1,248 units. The three closed deals appeared in D.C. deed records on Tuesday and Wednesday. Foulger Pratt paid $86M for the 203-unit Avalon at Gallery Place. It paid $181M for the 469-unit Avalon First and M, $142M for the 438-unit AVA NoMa, and it is expected to close on the 138-unit AVA H Street for $36M.
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Bozzuto and Invesco Real Estate have acquired a 454-unit apartment complex near Dulles International Airport, the partnership announced. The firms paid $147M for Ashton at Dulles Corner in Fairfax, a representative for Bozzuto told Bisnow. The seller, Greystar, acquired the property for $107M in 2017 and recapitalized it for $149.5M in 2021, Multi-Housing News reported. The purchase represents the second acquisition in the firms’ $330M multifamily investment program that’s expected to have investment capacity up to $1B. The new owners plan to upgrade 75% of the residences as well as amenity spaces and common areas.
MILESTONES
A newly redeveloped 217-unit affordable housing community in Silver Spring is open and available for leasing, the developer, Enterprise Community Development, announced this week. The two-building development, Park Montgomery and Park Montgomery West, sits on the east side of Silver Spring near University Boulevard. Enterprise renovated the 141 homes at the 1970s-era Montgomery Park building and developed the adjacent 76-unit building where a parking structure once stood. The units are reserved for households earning 60% or less of the area median income. Soto Architecture and Urban Design was the architect, and Harkers Builders was the general contractor. Enterprise is providing property management and residential services.
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Chevy Chase Land Co. is building out three new medical spec suites in its office building at 2 Wisconsin Circle, JLL, the landlord’s broker, announced this week. The suites, ranging from around 1,700 to 2,500 SF, haven't been leased and are expected to deliver this quarter. JLL said these will be the only spec medical suites in Chevy Chase. JLL’s Conn Curry, Andy Thau, Alden Stabb and Danny Sheridan are the landlord's brokers. 2 Wisconsin Circle totals 235K SF and was built in 1985.
PERSONNEL
With the departure of Michael Peters last month, the commissioner role of the GSA's Public Buildings Service has been filled by former Deputy Commissioner Andrew Heller, the Washington Business Journal reported. Heller is serving as the acting commissioner “until a new Commissioner is appointed,” GSA spokesperson Marianne Copenhaver told the WBJ.
LEASES
A 74K SF industrial building in Chantilly that broke ground this month is fully preleased, Stream Realty, which represented the landlord, announced this week. Electrical contractor PerLectric is taking the entire building that TSC Realty Services and The Willis Cos. are developing at 14650 Willard Road. Delivery is expected next summer. Stream’s Caulley Deringer, Steve Cloud and Andrew Hassett represented the landlord, and The Tenant Agency’s Daniel Klueger and Caroline Bilger represented PerLectric.
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A 9K SF childcare center inked a lease in Hanover, Maryland, Divaris Real Estate, which represented the landlord, announced this week. Learning Heroes Child Care Center is coming to Urban Investment Partners' 1334 Ashton Road and is expected to open in the first quarter of 2026. Divaris’ Joe Farina and Amit Grover represented the landlord and KLNB’s Austin Eber represented the tenant.
