Property Group Partners has finalized a deal with Capitol Crossing's first office tenant to occupy the top two floors of its 200 Massachusetts Ave. NW  building.

American Petroleum Institute will lease roughly 75K SF and plans to move from its 1220 L St. NW home to Capitol Crossing in late 2018, PGP announced Tuesday. The announcement follows Bisnow's report last week that the two parties were in advanced discussions.

JLL's Greg Lubar and Chris Bynum represented API. Cushman & Wakefield's Art Santry, Laurie McMahon, Bruce Pascal and Ned Goodwin represented the landlord.

The 12-story, 414K SF office tower will be the first of five planned buildings to deliver at the $1.3B megaproject being constructed above a deck PGP is building over Interstate 395. PGP has already signed a retail anchor for the building, Danny Meyer's Union Square Cafe.

The developer has also broken ground on 250 Massachusetts Ave. NW, a 559K SF speculative office building with ground-floor retail. After that, it plans to build a third office tower at 201 F St. NW, a residential building at 600 Second St. NW and a final office building at 200 F St. NW, each with ground-floor retail. PGP aims to complete the final phase in 2022.

"API will become part of a transformative and vibrant new destination in the District that is taking an innovative and sustainable approach to urban development,” API President and CEO Jack Gerard said in a release. “The eco-focused buildings, retail/restaurant locations, green space and real neighborhood feel will serve our members, business partners and employees well.”