This Week's D.C. Deal Sheet: Enterprise Greenlit For 444-Unit Redevelopment
Enterprise Community Development has received approval for its plan to redevelop a 224-unit garden-style community in Ward 8 into a new mixed-income development with twice the number of apartments.
The affordable housing nonprofit secured the zoning change for its project at Skyland Apartments at 2333 Skyland Place SE, its attorney Holland & Knight announced Thursday.
The new zoning doubles the permitted density from 411K SF to 821K SF, allowing Enterprise to proceed with its plan to replace the existing homes across 9 acres with 375 mixed-income units, 41 senior units and 28 townhomes for sale.
Enterprise purchased the community, which was built in 1939, in September 2022 for $25.7M after being selected by its residents through the Tenant Opportunity to Purchase Act process.
The development is set to occur in phases, with residents being relocated as they are impacted, according to a filing with the D.C. Zoning Commission. Enterprise expects to secure financing and start construction on Phase 1 and its 240 multifamily units between 2028 and 2030.
The development is also set to include workout facilities, a homework studio and community gardens, an Enterprise spokesperson said.
LEASES
Geico is moving from its longtime headquarters in Chevy Chase to Bethesda. The insurance giant is relocating to Carr Properties’ The Wilson at 7272 Wisconsin Ave., it announced in a company memo Thursday. The company didn't disclose the square footage, but the move to a 348K SF building with other tenants inherently represents a significant downsize from its current 514K SF headquarters.
***
Law firm Clark Hill is taking 28K SF at The Homer Building at 601 13th St. NW, according to a press release. The firm is moving into its new home — where Brown Rudnick is set to depart this spring — from 1900 N St. NW early next year, the Washington Business Journal reported. JLL's Jeanette Ko, Evan Behr, Kristen Mathis and Meghan Murray represented Homer Building owner Mitsui Fudosan America, and Advocate Commercial Real Estate Advisors’ Craig Braham and Ethan Braham and CBRE’s Chad Barbiaz, Mark Minich Sr. and Mark Minich Jr. represented Clark Hill.
SALES
Peterson Cos. paid $194M for 8001 Woodmont Ave., a 322-unit multifamily property in Bethesda developed and sold by Bethesda-based REIT JBG Smith. It was JBG's only multifamily property in Maryland, according to its year-end investor materials, which said it sees Bethesda as being subject to “more tempered rent growth long term,” though the property “garnered unexpectedly strong pricing and buyer pool depth.” 8001 Woodmont was 94.1% leased as of the end of the year.
***
Penzance purchased a 212K SF industrial portfolio in Manassas for $55M, the D.C.-based development and investment firm announced Friday. The seller was a partnership owned by Davin Holdings and The Davis Cos. Davin and Davis sold the Gateway Centre and Linden Business Center, which have six buildings between them in the Route 29/I-66 corridor. Gateway, which consists of 102K SF at 7201-7401 Gateway Court, was built in 1988, and Linden, which comprises 110K SF at 7245-7795 Coppermine Drive, was built in 2001.
JLL Capital Markets’ mid-Atlantic team, including Bill Prutting, Craig Childs and Chris Dale, represented the buyer and seller. Penzance tapped JLL’s D.C. metro industrial team to lease the property, which has current and upcoming vacancies of between 6K SF and 33K SF.
MILESTONES
Time Equities is pitching a plan to replace a 1980s-era Fairfax office building with a 400-unit apartment building with 5,500 SF of retail. The New York-based developer filed a rezoning application with Fairfax County on Feb. 10, FFXnow reported. The High Ridge office building just outside Fairfax city is “effectively vacant” after struggling with leasing postpandemic, according to the application. Its 209K SF is spread across three wings on 6.2 acres.
PERSONNEL
Cushman & Wakefield executive Roberta Liss is launching a new firm focused on data center consulting dubbed LNSS Advisors. Liss, who has been in the D.C. real estate business since 1997, was most recently C&W’s president of the mid-Atlantic and Southeast region. She began at C&W in 2015 when the brokerage merged with DTZ.
***
The Georgetown Business Improvement District has a new CEO, the BID announced this week. It hired Deborah Kerson Bilek, who has worked at ULI Washington for the past 11 years, most recently as executive director, according to her LinkedIn profile. Kerson Bilek is slated to begin her role in mid-April. She replaces Joe Sternlieb, who late last year announced he would be retiring in 2025 after 12 years in the role.
