This Week's D.C. Deal Sheet: Brookfield Sells Office Building For $153M
A Penn Quarter office building that dates back to the early 20th century has a new owner for the first time in nearly two decades.
Brookfield Properties sold the Victor Building at 750 Ninth St. NW. to Rockwood Capital for $153M, according to D.C. deed records.
“By selling the Victor Building, we continue to successfully execute on our strategy to optimize capital allocation to deliver maximum value to our investors,” a Brookfield Properties spokesperson wrote in an email to Bisnow.
Rockwood Capital obtained a $113.4M loan from Deutsche Pfandbriefbank AG along with the acquisition, deed records show. The buyer didn't respond to Bisnow's request for comment.
The 330K SF property’s office tenants include law firm Akerman, Tiber Creek Group and administrative offices for the Smithsonian, according to their websites. Its ground-floor retail tenants include Maman bakery, Silver Mirror Facial Bar and Cranes, a Michelin-starred Spanish-Japanese fusion restaurant.
Brookfield acquired the building in November 2005 from the Smithsonian Institution for $157.5M, according to deed records. It was part of its $9B acquisition of Chicago-based REIT Trizec Properties.
Brookfield's spokesperson told Bisnow the company made money on the property from strong cashflow coupled with recapitalizing the asset several years ago, at which time it pulled its equity out.
SALES
TIAA subsidiary Nuveen sold a 368K SF office property a block from the McPherson Square Metro station for $118M, according to D.C. deed records. Tourmaline Capital Partners purchased the property at 1401 H St. NW. The buyer secured an $88M loan from Morgan Stanley Bank for the acquisition, deed records show. TIAA acquired the property in 2006 for $205M.
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A 163K SF shopping center anchored by Prince George’s County’s only Whole Foods has traded hands. Bethesda-based First Washington Realty announced it acquired the shopping complex that makes up the retail portion of mixed-use district The Station at Riverdale Park. Calvin Cafritz Enterprises developed the district and was the former owner of the 163K SF of retail. The center’s retailers include Burton’s Grill, Starbucks, Gold’s Gym, Jersey Mike’s, Denizens Brewing Co. and District Taco. The price wasn't disclosed, and the sale hasn't appeared in property records.
LEASES
J.Crew is moving its Georgetown location across the street. The fashion retailer is relocating from 3262 M St. NW to 3077 M St. NW, EastBanc and Acadia Realty Trust announced. Those companies jointly own the 22-property Georgetown Renaissance Portfolio, the vast majority of which is located on the M Street retail corridor. The partnership didn't disclose the square footage of J.Crew’s new footprint. Showfields previously occupied the space with a 20K SF footprint.
MILESTONES
D.C. leaders broke ground Monday on the final phase of the Fort Lincoln New Town Development, which has been in development since the 1970s. The ceremony marked the construction start of a 44K SF recreation/early childhood education center, a $49M project that will also reactivate a section of Fort Lincoln Park that has been inaccessible since 2013. Also part of the final development phase is the City Homes development, 51 new townhomes at the Fort Lincoln site slated to start delivering next year and be completed in 2028. Those are being developed by Fort Lincoln New Town Corp., which has built its namesake neighborhood over the past half-century.
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A 47-unit community designed for multigenerational housing opened in northeast D.C. this week. Dix Street Residences at 5717 Dix St. NE, near the Maryland border, is designated for households with at least one member aged 55 or older. District officials joined the development partnership — which includes D.C.’s Department of Housing and Community Development, the District of Columbia Housing Authority and Atlantic Pacific Companies — for a ribbon-cutting ceremony on Thursday.
