Skanska Signs 3 Tenants At New Downtown Office Building: The D.C. Deal Sheet
The trophy office building Skanska completed in D.C. last year is now 90% leased after it landed three new tenants.
The Swedish developer signed architecture and design firm Corgan to 9,700 SF and the University of Michigan to 11,500 SF in the 17xM building at 1700 M St. NW. The third lease is for a professional services firm that requested confidentiality, a Skanska spokesperson said.
Corgan is moving from the temporary space at 19th and I streets northwest, which it occupied last year in its entry to the market while looking for its “ideal office.”
Michigan’s lease represents its first in the D.C. market. The Washington Business Journal previously reported that Michigan’s board of regents had approved the lease in October.
“Our presence in Washington, D.C. creates new opportunities for our students, faculty, staff, and alumni to engage directly with thought leaders, policymakers, and each other,” Michigan Executive Director of Real Estate Chris Allen said in a release.
CBRE represented Skanska on both leases as well as the University of Michigan on its deal. Savills represented Corgan.
“Whether relocating from nearby or entering the D.C. market for the first time, 17xM has become a premier destination for organizations seeking a best-in-class workplace,” Skanska Executive Vice President Mark Carroll said.
SALES
A partnership has purchased a 160-unit market-rate apartment building in Silver Spring with plans to turn the vast majority of them affordable. Affordable Homes & Communities and BrookWynn Capital paid $42.3M for The Premier at 8711 Georgia Ave., they announced this week. The partnership also plans to invest $553M into building improvements. The seller, Guardian Realty, developed the building in 2014.
MILESTONES
Public officials and developers this week celebrated the groundbreaking of a 220-unit senior living community at Montgomery County’s Grosvenor-Strathmore Metro station. Denver-based NexCore Group and D.C.-based Fivesquares Development are developing The Reserve Strathmore, set to be operated by NexCore’s Experience Senior Living. It is the second phase of Fivesquares' six-phase transit-oriented development. The first phase, which delivered in the fall of 2024, featured two buildings totaling 220 units. In total, 2,120 residential units and 131K SF of retail are planned.
***
Arlington-based True Ground Housing Partners opened a 234-unit all-affordable residential building in Rosslyn this week. Wholey Legacy Homes is a redevelopment of a 31-unit garden-style apartment portion of the Marbella Apartments community. The project includes 100 garage parking spaces, an outdoor courtyard and playground, and community spaces. The total project cost was $136M, with nearly $83M in construction costs. Units will be reserved for residents making between 30% and 60% of the area median income.
***
Developers TM Associates of Rockville and Green Street Housing joined Maryland and Montgomery County officials this week to cut the ribbon on a 98-unit affordable apartment building in Silver Spring. Bracken Square at 715 Sligo Ave., which is opening to residents next week, cost $55M to develop, Bethesda Today reported. Units will be reserved for those earning between 30% and 80% of the area median income.
