This Week's D.C. Deal Sheet: Shaw Affordable Project Gets Financing
A 90-unit affordable redevelopment in Shaw has secured financing even as D.C. faces a difficult environment for new housing construction.
The $83M project, branded S Street Village, is a redevelopment of the New Community Church and three townhomes at 614 S St. NW. It is being developed by Manna and Affordable Homes & Communities.
The D.C. Housing Finance Agency issued $36M in tax-exempt bonds and underwrote $29M in federal and $5M in D.C. low-income housing tax credit equity, it announced this week. The project also received a $15.7M Freddie Mac tax-exempt permanent mortgage loan and an $11.6M Amazon Housing Equity Fund subordinate loan, a DCHFA spokesperson told Bisnow.
Manna owns the property in a joint venture with the church, which will be rebuilt as part of the project. It acquired the rights through a Tenants Opportunity to Purchase Act process with the owners of the townhomes. DCHFA CEO Christopher Donald said the church and Manna have been “anchors of stability and long-term investors” in the neighborhood.
“This deal was brought to fruition despite challenging times and will stand as a testimony to the commitment of everyone sitting around the table,” Donald said in a statement.
LEASES
The General Services Administration is renewing a 403K SF lease for the Department of Justice in NoMa. The lease represents a 30% reduction in the agency’s footprint at Northwestern Mutual’s Two Constitution Square. The DOJ moved into the building at 145 N St. NW in 2010, taking the entire 575K SF office footprint. The agency’s lease is for a 15-year term with a five-year option. Cushman & Wakefield's Darian LeBlanc and Scott Killie represented the landlord, while CBRE's Henry Chapman and Richard Downey represented the government. Sean McNeal was the GSA contracting officer on the deal.
***
Miles & Stockbridge is moving its Montgomery County office from Rockville to North Bethesda, its new landlord, Federal Realty, announced this week. The firm is taking 7K SF in the 915 Meeting St. building at the Pike & Rose mixed-use development. Miles & Stockbridge plans to move into its new space on the 11th floor in the fall. It is moving from 11 N. Washington St. in Rockville, where it has 11,800 SF.
BXP has signed its second law firm to a downtown D.C. office project it has yet to start. The REIT announced it has inked a 126K SF lease with Cooley LLP for its planned 320K SF development at 725 12th St. NW. JLL's Evan Behr represented BXP, and Newmark's Aaron Katz and Mike Shuler represented Cooley. This deal, combined with law firm McDermott Will & Emery’s 150K SF prelease, means the property is 87% leased before it has started construction.
***
Brookfield’s newest, nearly complete Navy Yard apartment building landed a fitness tenant. The 467-unit Urby building at 1331 Yards Place SE inked a deal for a 3K SF franchise location of Boston-based Rev’d. Rev’d NVYD will feature two concepts: indoor cycling and Powerhouse, which involves high-intensity, low-impact strength and cardio training. The company has three Boston locations and franchise locations in Tempe, Arizona, and Portland, Oregon.
SALES
Monument Realty has purchased the loan for Douglas Development’s Chinatown Row retail assemblage across from the Capital One Arena, the Washington Business Journal reported. A Monument representative filed a notice with the D.C. Recorder of Deeds that indicated it intended to foreclose on the property and showed Douglas owes more than $28.5M. Douglas took out a $31M loan in 2013 to refinance the property.
PERSONNEL
Savills has named Amy Kaufman Brendler and Jon Glass as executive vice presidents and co-leads of the brokerage's D.C. region. Brendler comes from CW Capital, where she was most recently a senior vice president. She began her career at Savills in the early 2000s, when it operated as Studley. Glass was most recently a senior managing director with Savills.
