This Week's D.C. Deal Sheet
Construction on a major new development on the eastern side of D.C.'s new Frederick Douglass Memorial Bridge is set to begin.
Del. Eleanor Holmes Norton joined District officials and the leaders of Redbrick LMD for the groundbreaking of The Douglass, a 750-unit multifamily development and the first building to begin construction in Redbrick's Bridge District.
Norton, speaking at the event, touted the years she spent in Congress "squirrel[ing] away funds" to get federal dollars for the bridge's construction and nearby development on both sides of the Anacostia River.
"I am particularly pleased to celebrate this groundbreaking of the Bridge District," Norton said. "In a city on two sides of a river, the Frederick Douglass Bridge became perhaps the most important bridge in the nation's capital. ... I look forward to the Bridge District bringing housing, retail and other amenities to Southeast."
The Douglass will feature roughly 80 units of affordable housing, with 29 affordable three-bedroom units, Ward 8 Council Member Trayon White said.
White praised the developers for agreeing to the affordability level, which Redbrick said was determined as part of a process that included 200 meetings.
"I want to thank you guys for making some of those units three bedrooms," White said. "There are far too many times I get calls from residents who said, 'I got approved to live here, [but] I can't live here because we don't have enough bedrooms.'"
The Bridge District is planned to comprise 2.5M SF of mixed-use development across six buildings, including office, residential and retail space.
Redbrick Managing Partner Tom Skinner said Atlas Brew Works is in talks to open a brewpub and production facility in the area that would employ 100 people. Sandlot Anacostia is also planning to open a 25K SF entertainment space in the Bridge District.
SALES
Peterson Cos. acquired a 10-building office portfolio in Fairfax, the firm confirmed to Bisnow. The deal was first revealed in an email blast from Transwestern, which said it received 18 offers on the property. The Fair Oaks Business Park, located near the juncture of Interstate 66 and U.S. Route 50, totals 291K SF and is 76% leased. The property was sold by PS Business Parks for $36.5M, according to a source involved in the deal.
"We are excited about the opportunity that Fair Oaks Business Park presents," Taylor Chess, Peterson's president of development, said in an emailed statement to Bisnow. "It’s a great property in an outstanding location and with future improvements, we feel the accessibility will be exceptional."
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A medical office building near the Mosaic District sold for $21M, Avison Young announced this week. A team from the brokerage led by Jim Kornick, Mike Wilson, Jon Goldstein and Joe French represented the seller, Tomares Cos., in the deal. In a release, Kornick said there was "intense competition" for the building, which sold to Global Medical REIT. Known as Prosperity Plaza, the building was constructed in 1986 and is located at 3020 Hamaker Court, less than 1 mile from the Inova Fairfax Hospital. It is 84% leased.
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Sterling Organization sold a 105K SF suburban shopping center in a $29.1M deal, the firm announced Tuesday. Haverford Properties, a Philadelphia-based investor, purchased the Safeway-anchored property. Sterling previously acquired the Dale City, Virginia, shopping center for $22.5M, and CEO and Managing Principal Brian Kosoy said the newly announced sale exceeded Sterling's target returns.
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Atlanta-based investment firm Cortland is making a splashy entrance into Greater Washington, snapping up more than 1,500 residential units in Arlington for roughly $1B. The company revealed two of the four acquisitions: a 23-story, 331-unit building in Rosslyn and a 534-unit building in Pentagon City. The firm expects to finalize its other two acquisitions soon.
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An affiliate of South Korean Firm Sono Hospitality has acquired The Normandy Hotel in Kalorama for $14.6M, according to property records. The 75-room hotel previously sold for more than $15.5M in 2017, indicating a discount likely caused in part by the pandemic.
CONSTRUCTION MILESTONES
District officials joined an Akridge-led development team to break ground on The Stacks, a 2M SF mixed-use project in Buzzard Point. A month ago, the development team that includes Akridge, National Real Estate Advisors, Blue Coast Capital and Bridge Investment Group secured a $367M construction loan from Bank OZK to kick off the project. When completed, the project is planned to include more than 2,000 residential units and about 80K SF of retail, plus the potential for office and hotel space. The development team expects to complete the first phase in 2025.
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Public officials and members of the development team were on hand for the groundbreaking of a 1.2M SF project outside the West Falls Church Metro station. The multiphase development, led by Hoffman & Associates and EYA, is slated to include office, hotel, retail and multifamily, including senior housing. Slightly less than an acre of the 9.5-acre property will be reserved as public community space. The project is scheduled to deliver in 2024, according to its website.
