Peterson Cos. Continues Acquisition And Development Amid CRE Uncertainty

One Fairfax, Virginia-based real estate developer is pushing forward and seizing opportunities, despite economic uncertainty causing many businesses to hold off on making crucial decisions.

This uncertainty, caused by tariffs, inflation and seemingly constant evolving factors, will continue to impact commercial real estate throughout the remainder of the year. For Peterson Cos., which focuses on the Washington, D.C., Maryland and Virginia region, this time means staring uncertainty in the eye and forging ahead.

Peterson Cos. has been expanding its footprint in the multifamily, industrial and self-storage sectors while maintaining its portfolio in retail and office. It is one of the largest privately owned real estate development companies in this area.

The firm has always taken a forward-looking approach to CRE, said Jon Peterson, the firm’s CEO. As it celebrates its 60th anniversary this year, its plans include continuing to diversify its portfolio of assets and maintaining its commitment to the DMV.

“We’ve pushed our own boundaries of what we consider the greater Washington, D.C., area, expanding out to the West Virginia panhandle, Richmond and northeast Maryland while still remaining committed to the core region,” Peterson Cos. President Dan McCahan said. “We believe in this market, and our physical proximity to the real estate we’re developing and managing is foundational to our approach. We also value the relationships we have across the industry.” 

The firm was founded in 1965 by Milton V. Peterson, who aspired to “build communities in which people could live, work, shop and play in a safe and comprehensively planned environment.”

One example of this vision is Peterson Cos.’ National Harbor development, a 350-acre Maryland mixed-use waterfront community with 15 million yearly visitors and more than 2,700 residents. National Harbor includes more than 500K SF of Class-A office, 160 shops, 40 restaurants and more than 3,400 hotel rooms. 

“Peterson has been known for developing some of the most iconic mixed-use and retail centers in the DMV,” Peterson said.

The last decade has been pivotal for the company’s growth. He said that while Peterson Cos. had mainly purchased land and sought government approvals for development in the past, it eventually included investing in CRE as well. Proceeds from project and land sales have led to the acquisition of Class-A assets in the multifamily and industrial sectors. The company has also acquired land for future development.

During this time, the company has also expanded into the self-storage, industrial and data center sectors with development projects throughout Maryland and Virginia. 

While the company has evolved since 2015, it remains true to its core values and corporate culture, Peterson said. 

He said the firm’s status as a privately held company means it can make swift decisions on opportunities across different asset classes instead of having the market dictate its direction. 

“Flexibility allows us to ride out market cycles that may impact one asset class more or less than others,” McCahan said. “Our diversity of holdings and our development capabilities set Peterson apart from our competitors.”

Peterson said one facet of the company’s values revolves around doing the right thing. Its current development projects emphasize meeting community needs, which includes incorporating sustainable practices like tree preservation and landscaping. 

He cited another example of Peterson Cos. responding to a Loudoun County, Virginia, community’s opposition to building data centers. Despite the ubiquity of data centers in Northern Virginia, the firm scrapped the data center project and instead developed a residential community with low-income housing, workforce housing, townhouses and condominiums.

“At the end of the day, we heard what the county wanted and looked at the market to see what the market would support,” he said. “We’ve been successful in this region because we collaborate as much as we can with local jurisdictions. We’re here for the long term, so we know we’re always going to be back in front of them in the future.”

Peterson Cos. still has data centers on its radar. Its strategy in this space entails purchasing land appropriate for data center development and getting the necessary approvals to turn around and sell. In September 2024, the firm received approval to develop a 504-acre data center campus in Stafford County, Virginia, which would bring about 5.8M SF of data centers. It was sold for $302M in January.

This year marked a special occasion for the company’s multifamily portfolio: buying its first property in Washington, D.C. In July, Bisnow reported that Peterson Cos. purchased The Batley’s 432 apartments for $155M from D.C. REIT JBG Smith. Located near Union Market, these apartments are part of a dynamic mixed-use environment.

“We were comfortable that it would be a good investment because of Dan’s expertise in downtown D.C., our previous experience working with JBG Smith and our optimism about the D.C. government’s regulatory modifications,” Peterson said.

This is one asset in a series of multifamily acquisitions, with Peterson Cos. acquiring more than 2,100 multifamily units since 2023.

Peterson said that the beginning of this year also marked a personal milestone for the company: relocating its headquarters from an office park that it developed in Fair Lakes, Virginia — its home for 39 years — to a larger location in Fairfax Corner, a mixed-use development that the company owns. 

The new headquarters comprises enhanced technology, added conference spaces and amenities for its employees, such as a lounge, huddle rooms and quiet rooms. It is among shopping, dining, exercise and entertainment amenities at Fairfax Corner.

Peterson said the firm continues to operate its substantial and diverse portfolio. It plans to seek out lucrative opportunities for acquisition and concentrate on land development while staying in tune with the real estate and political climate in the region. He has expressed enthusiasm for continued growth in the D.C. metro area.

“We’re coming to the tail end of a really active acquisition cycle for Peterson that has been going on for a few years, and we have accomplished a lot even in the last eight to nine months,” he said. “We’re staying a step ahead of what’s going on in the economy and looking at the opportunities available.”

Peterson said the strategic plans the company formalized six years ago and adjusted periodically as needed have laid the groundwork for the future. The company has also focused on and implemented succession planning. Part of this planning includes strengthening the C-suite and senior management teams by leveraging the talent, skills and experience of its employees.

“We feel comfortable tackling anything because of our experiences, our strong leadership and principled approach,” Peterson said. “There’s nothing out there we can’t be a part of, and we can handle whatever comes our way.”

This article was produced in collaboration between Studio B and Peterson Cos. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.