This Week's D.C. Deal Sheet: Tishman Turns To Wine Storage To Fill Space In Downtown Office Building
A downtown office building owner has found a new way to fill vacant space: hundreds of thousands of bottles of wine.
Wine storage company District Wine Storage signed a lease to open its inaugural location in 8K SF of subterranean space at Tishman Speyer’s 1919 Pennsylvania Ave. NW, broker JLL announced this week.
The facility will store wine for restaurants and collectors in a temperature- and humidity-controlled environment. District Wine Storage co-founder Kevin Shin told Bisnow the facility is expected to open within four to six months, and he estimates it will be able to hold about 300,000 bottles.
District Wine Storage expects the facility to fill up with bottles quickly, and it is on the lookout for its next location. The company's website cites an “acute shortage of qualified and safe wine storage space” for business owners and residents in the D.C. metro area.
Tishman Speyer’s 285K SF office building opened in 1978. The landlord renovated it in 2022, including adding a rooftop terrace and conference center with a 160-person capacity, redesigning the lobby and updating the fitness center. It is home to ground-floor tenants Metropolitan Optical and restaurant Saya Saltena, plus office tenants including Cadwalader, Wickersham & Taft, Saul Ewing and All In Entertainment, according to their websites.
“This is a great example of converting lower-level office space into a creative adaptive reuse for specialty wine storage,” JLL Executive Managing Director James Cahill said in a statement.
Cahill represented the tenant along with JLL's Anna Lee Ware, and KLNB’s Kim Stein and Jennifer Price represented the landlord along with Tishman Speyer’s Dan Dooley.
LEASES
Law firm Bradley Arant Boult Cummings inked an entire-floor sublease near Farragut North, broker Savills announced. The firm is taking 28K SF on the eighth floor of Nuveen’s 1900 K St. NW, subleasing from fellow law firm Dentons. Savills’ release describes the deal as “long term.” Savills’ Tom Fulcher and Adam Brecher represented Bradley, and JLL’s Elizabeth Cooper and Bobby Blair represented Dentons. Bradley is relocating from Carr Properties’ 1615 L St. NW, where it had 33K SF on two noncontiguous floors.
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Infrastructure firm HNTB Corp. signed a lease to relocate and expand its Arlington office. The company is taking 48K SF across two full floors at Monday Properties’ 1812 North Moore, Savills announced this week. The lease is a 13K SF increase from HNTB's office at Shirlington Tower. HNTB plans to move in spring 2026. Savills’ Dina Zavislak and Charles Daggett lead the brokerage’s relationship with HNTB, while Savills’ Curtis Krusie, Nicole Miller and Tomi Sargent were also involved in the deal.
MILESTONES
The Stacks’ 1M SF first phase is complete after the delivery of the final two of its three mixed-use residential buildings. Development team Akridge and National Real Estate Development announced the Colette and Everly buildings are complete, joining The Byron, which opened in January. Residents are moving into the two newest members of the Buzzard Point residential trio this month. The first phase totals 1,116 units, 90K SF of shared amenities, 40K SF of retail, 22K SF of public parks and 11K SF of coworking space.
SALES
Lender CIM Group took control of two Tysons office buildings last quarter. Fairfax County property records show CIM acquired the buildings at 8401 and 8405 Greensboro Drive for $148M, the same amount that it lent to owners Westbrook Partners and AREP in 2022.
Lincoln Property Co.’s first-quarter report refers to the deal as a “foreclosure sale,” the Washington Business Journal first reported. CIM declined to comment to Bisnow on the nature of the deal, while AREP and Westbrook didn't respond to requests for comment.
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Brookfield Properties sold the Potomac Electric Power Co.’s Gallery Place headquarters this week, according to D.C. deed records. Exelon Corp. paid $175M for the 384K SF building at 701 Ninth St. NW. Brookfield purchased the building two decades ago for $169.8M, according to deed records. Zaytinya by José Andrés is located on the ground floor.
FINANCING
A 161-unit Dupont Circle office-to-residential conversion has begun construction after it received its debt financing last week. Duball’s project at 1201 Connecticut Ave. NW secured a $54.5M loan from EagleBank. It also received a 20-year tax abatement through D.C.’s Housing in Downtown program. Duball President Marc Dubick said the project is expected to total $100M and take around two years to complete.
