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This Week's D.C. Deal Sheet: Downtown Medical Building Sells For $46M

A 122K SF medical office building in downtown D.C. has traded hands for $45.5M.

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The 122K SF office building at 2440 M St. NW

Evergreen Medical Properties and Bain Capital Real Estate purchased the property at 2440 M St. NW, Newmark Executive Managing Director Jud Ryan announced on LinkedIn this week.

The seller was Harrison Street. It was one of eight properties for which the company secured a $126M refinancing loan from Thorofare Capital at the end of 2023. 

The new owners secured a $28.5M acquisition loan through New York Life, Ryan said. The deal hadn't been recorded with the D.C. Recorder of Deeds as of Friday afternoon. 

LEASES

Vehicle information provider Carfax is moving its Fairfax headquarters location to Comstock’s Reston Station. The company is taking 87K SF across three floors of 1906 Reston Metro Plaza, a 150K SF building that delivered in 2020, Comstock announced this week. The new space is larger than Carfax's headquarters at 5860 Trinity Parkway in Centreville, where it occupies 78K SF, according to a Carfax spokesperson. The company plans to complete the move by the end of the year. 

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Monumental Sports & Entertainment is absorbing 75K SF of retail at Gallery Place, the Washington Business Journal reported. The company inked 120K SF of office space at 616 H St. NW, which MRP Realty purchased last year. The deals are part of an expansion and revamp of Capital One Arena next door, set to total $800M.

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BXP signed law firm McDermott Will & Emery to the top five floors of a Metro Center office building it plans to build from the ground up. The office REIT announced it leased 150K SF to the law firm this week, allowing it to demolish the existing office building at 725 12th St. NW and start construction on a new 320K SF office tower in its place.

SALES

Douglas Development offloaded three commercial properties in Ivy City and Gallery Place for just north of $96M, Bisnow first reported. The D.C. real estate giant sold the development site once planned for a huge mixed-use development on the New York Avenue corridor and the redeveloped Pappas tomato factory, both in Ivy City, and a redeveloped bank downtown that now houses the restaurant Succotash. American Armed Forces Mutual Aid Association Property was the buyer.

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Donaldson Impact Investments partnered with Affordable Homes & Communities to acquire a 312-unit apartment community in Burtonsville, Maryland, 20 minutes from downtown Silver Spring. The partnership paid $63M for the property and was the first to use the county’s by right Payment in Lieu of Taxes, or PILOT, program. Market-rate equity was provided by New York Life and private investment firm Declaration Partners, anchored by David Rubenstein. 

The partnership said the acquisition secures the community’s long-term affordability and introduces new resident services. One hundred seventy-two of the units will be dedicated affordable housing.

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Pembroke has acquired a new 267-unit apartment building in Clarendon. The Boston-based company paid $158.3M for Fitzroy at 3275 Washington Blvd., it announced Monday — its first residential property in the U.S. Trammell Crow Residential and Shooshan Co. delivered the nine-story building in the fall of 2023, one of three residential buildings at the site of the former Red Top Cab headquarters and dispatch center. Berkadia’s Brian Crivella, Yalda Ghamarian and Bill Gribbin facilitated the sale.

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Maizon Bethesda at 4900 Moorland Lane, which is being rebranded by its new owner as Griffis Edgemoor.

Griffis Residential acquired the 229-unit Maizon Bethesda at 4900 Moorland Lane. The price was $115.25M, the Washington Business Journal reported. The seller was ZOM Living. The property, which delivered in 2021, is being rebranded as Griffis Edgemoor. It was also brokered by Berkadia’s Crivella, Ghamarian and Gribbin.

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Mesirow Financial Holdings purchased a 412-unit apartment building in Tysons for $175.1M, the Washington Business Journal reported. Hanover Tysons was owned by Houston-based Hanover Co. which the Houston-based developer delivered in 2022. Berkadia’s Crivella, Ghamarian and Gribbin brokered the sale.

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A seven-building Rosslyn portfolio totaling 2.1M SF has a new owner. Beacon Capital Partners is now in control of 1000, 1100, 1101, 1200, 1501 and 1515 Wilson Blvd. and 1701 Fort Myer Drive, previously owned by Monday Properties, the Washington Business Journal reported.

The New York-based owner defaulted on the portfolio’s $691M senior loan and $100M-plus mezzanine loan in 2023. It is unclear how Beacon came to control the properties, the WBJ reported. It also reported that Goldman Sachs Group, the loan’s original lender and equity partner, is no longer involved with the property. The properties, spanning 2.1M SF, had an appraised value of more than $1.1B as of the loan origination date.

FINANCING

Henson Ridge I, a 124-unit affordable apartment community in Anacostia, has received $59M in financing for its preservation and modernization. Capitol Housing Partners, an affiliate of the District of Columbia Housing Authority, and Urban Atlantic Development received $34M in tax-exempt bonds from the District of Columbia Housing Finance Agency, which also underwrote more than $25M in Federal and local Low-Income Housing Tax Credit equity. NewPoint Real Estate Capital is the construction lender, and The Richman Group and RiseImpact Capital were the federal and local LIHTC equity partners, respectively. 

The units will remain affordable for residents earning 60% or less of the area median income, and 68 of the units will receive subsidies through a Rental Assistance Demonstration conversion to Project-Based Vouchers. DCHA expects to begin construction in the spring and will require the residents to temporarily relocate.

PERSONNEL

Bill Tompkins, who has headed the Montgomery County Economic Development Corp. since 2022, is departing. Tompkins’ last day as CEO and president of the body is Aug. 15, when his term ends, MCEDC announced. The board of directors has initiated a search for his successor, led by Board Members Anne Khademian and Andy Chod, and set up a transition committee chaired by Board Member Jennifer Hsin.

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Eric Price took over for Dick Burns as CEO of The NHP Foundation, starting Jan. 1, the nonprofit affordable housing developer announced Wednesday. Price has been with NHP for six years, most recently as president. He previously served as D.C.’s deputy mayor for planning and economic development from 1999 to 2004, and after that he worked for Local Initiatives Support Corp., Abdo Development and AFL-CIO Housing Investment Trust, according to his LinkedIn page. Burns, who led the organization for the last 15 years, will continue to serve on its board of trustees.