This Week's D.C. Deal Sheet
Future Business Leaders of America, a national career preparation nonprofit, closed a pair of deals in Reston to sell its longtime headquarters building and lease space at another property.
The nonprofit sold the building at 1912 Association Drive in Reston, where it has been headquartered since 1992, and it leased space in a building roughly 2 miles away at 12100 Sunset Hills Drive, FBLA announced Wednesday.
The Association Drive property sold to Ryan Stuart Development for $4.1M, an FBLA spokesperson told Bisnow. The building totals 10K SF and sits on a 1.7-acre lot, according to LoopNet.
The Sunset Hills Drive lease totals 6,379 SF, the spokesperson said. JBG Smith owns the building as part of its RTC West project, which features retailers such as Coopers Hawk Winery & Restaurant, Little Beast Bistro, Nando's Peri-Peri, Mezeh Mediterranean Grill, Tiki Thai and BGR.
FBLA said it is leasing temporary space while its new office is being completed, which is expected to take six to nine months. It said selling its longtime headquarters and shifting to a lease is financially beneficial for the nonprofit. Avison Young's Sam Werner and Jonathan Danziger represented FBLA in the sale and lease deals.
"Converting an underutilized real estate asset into mission-focused financial resources is how we are putting the business back in FBLA,” FBLA CEO Alexander Graham said in a release.
SALES
A building in the heart of Old Town Alexandria featuring four floors of vacant office space and retail has sold to a firm that plans to convert it to residential. Feldman Ruel Urban Property Advisors announced Thursday it brokered the sale of 901-905 King St. on behalf of the seller, A&H LLC, for $5M.
Feldman Ruel's Tanner Scales, who brokered the deal along with Ian Ruel and Josh Feldman, told Bisnow the property sold to Windmill Hill Homes, which is preparing to convert it to 14 multifamily units. The building also has a ground-floor retail tenant, White House Black Market, which the buyer plans to keep in the building.
"It’s got a substantial amount of square feet of vacant office space, which is very hard to fill in the current environment, so naturally it makes sense to change the use to something that will generate more income," Scales said. "And given its trophy location, you’re going to draw a lot of people who want to be near the retail and restaurants."
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The Fairfax Circle Shopping Center in Fairfax sold this week for $23.5M, a source involved in the deal told Bisnow. The 127K SF retail property at 9629-9709 Fairfax Blvd. sold from a partnership that included Rosenthal Properties to an undisclosed purchaser.
The tenants at Fairfax Circle include several restaurants, an Alpine Ski Shop, a Bowlero bowling alley and a pool hall. The sale was brokered by AdvisoRE LLC and Jack C. Donnelly Inc.
LEASES
JBG Smith landed a new 37K SF lease in National Landing with a military shipbuilding giant. The REIT announced Tuesday it signed HII, or Huntington Ingals Industries, at 2451 Crystal Drive. The 11.5-year lease will give the company signage rights on the 11-story Class-B tower, where it plans to move next summer. Colliers' Adam Schindler and Perry Frazer represented the tenant in the deal, while JBG's Andrea Murray and Connor Stewart worked on the deal for the landlord.
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Comstock Partners signed a lease with entertainment venue Puttshack at Reston Station. The "tech-infused" mini-golf concept with food and drink plans to move in 2025 to 29K SF at 1850 Reston Row Plaza, part of the project's second phase. The deal marks the first D.C.-area space for Puttshack, which is charting a nationwide expansion after landing a $150M investment from BlackRock.
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Boston Properties inked a 10K SF lease with wine bar and restaurant Sixty Vines at 2200 Pennsylvania Ave. NW in Foggy Bottom, the Washington Business Journal reported. The Texas-based chain also signed on with the REIT in June at Reston Town Center. The Foggy Bottom location, expected to open this time next year, will replace two restaurants that closed in 2020: District Commons and Burger Tap & Shake. CBRE's Lisa Stoddard and Casey Benson Smith represented the landlord in the lease, while CBRE's Jessica Curtis and Kelly Silverman represented the tenant.
MILESTONES
JBG Smith filed plans this week to add more than 1,600 residential units to the RiverHouse community in Pentagon City, near Amazon HQ2. The REIT announced it plans to develop three mid-rise apartment buildings totaling around 1,000 units, a 164-unit condo building, a 185-unit senior living building and 265 townhouses.
The RiverHouse community features three high-rise apartment buildings totaling nearly 1,700 units that were built in the 1950s and 1960s. JBG Smith's latest plan would add more units than a previous iteration planned in 2019 but is still well below the maximum allowable density. The Arlington County Board adopted a plan in February that would allow up to 3,800 new units on the site, the Washington Business Journal reported.
"Following the County’s adoption of the Pentagon City Sector Plan, our team has had the opportunity to meet with local residents, neighbors, County Staff and other community stakeholders," JBG Smith Senior Vice President Matt Ginivan said in a release. "We are grateful for their time, insight and input, which have helped shape our proposed plans for the RiverHouse Neighborhood."
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LCOR launched leasing this week at a new 457-unit apartment building near Union Market. Branded as Cielo, the project at 300 M St. NE is slated to deliver this fall with units ranging from studios to two-bedroom apartments. Its amenities include a rooftop pool and lounge area on the 12th floor, plus an indoor-outdoor amenity space on the ninth floor and a fitness center. It also features 10K SF of ground-floor retail.
