The $1.3B mixed-use project rising above Interstate 395 is close to landing its first office tenant.

The American Petroleum Institute is close to finalizing an 80K SF lease for 200 Massachusetts Ave. NW, the first office building Property Group Partners is delivering at the Capitol Crossing development.

Cushman & Wakefield Executive Managing Director Malcolm Marshall told Bisnow in a recent interview that the landlord, represented by brokers at his firm, was close to signing an 80K SF lease. Two additional sources then confirmed the lease and named API as the tenant. JLL's Gregory Lubar, who represents API, acknowledged the talks were occuring but said no deal has been finalized. PGP and API declined to comment.

The oil industry trade association would move about a mile east from its downtown D.C. home at 1220 L St. NW. The new office building is expected to deliver next year.

The development aims to connect the East End office submarket with the Capitol Hill and NoMa neighborhoods, areas that were previously divided by I-395. Before going vertical, the developer built a deck atop the highway, installing support beams and filling in more than a foot of concrete. PGP, along with its general contractor, Balfour Beatty, then began building atop that deck and starting with 200 Mass, a 414K SF office building with ground-floor retail. It has since broken ground on 250 Mass, a 559K SF building with office and retail, also on a speculative basis.

After the two office buildings, PGP 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. The development is planned to include 75K SF of total retail.

The developer earlier this year signed a retail anchor after years of speculation. Famous New York City restaurateur and Shake Shack founder Danny Meyer will open the first location outside of New York City of his award-winning Manhattan restaurant Union Square Cafe. PGP had previously been in talks with Eataly to open a food hall in the development, but that deal fell through.