International law firm Simpson Thacher & Bartlett LLP appears to be in talks to lease a historic property near the White House, in what could become the District's largest private sector lease so far this year.
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The New York City-based firm is “at lease” for 200K SF at 1445 New York Ave. NW, according to an earlier copy of Stream Realty’s second-quarter report shared with Bisnow. The reference to Simpson Thacher and lease negotiations has since been removed from the report.
Simpson Thacher declined to comment. Stream Realty did not respond to multiple requests for comment on why the reference was removed.
If finalized, the lease would be one of the biggest in years and would follow a distinctive trend of large law firm deals in downtown D.C. that have sparked new trophy development or renovations.
The 1880s-era building at 1445 New York, listed on the National Register of Historic Places, is slated for a massive revamp. It is owned by Ponte Gadea, the investment vehicle of Zara founder Amancio Ortega. The owner did not respond to a request for comment in time for publication.
The renovation plans at the property, revealed in filings with the U.S. Commission of Fine Arts last month, include adding a rooftop amenity space and habitable penthouse, undertaking a partial glass facade replacement, modifying the entryway and creating a new atrium. The filings said the project is an effort to make the property “more competitive in the DC market and more attractive to top tenants.”
The CFA approved the concept design at its July 16 meeting and said it "looks forward to further review" of the project.
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The potential deal would closely mirror White & Case's transaction last quarter a few blocks away at 1701 Pennsylvania Ave. NW. That firm inked a 196K SF lease, currently the largest private sector lease of the year. The landlord, Grosvenor, is planning a large-scale renovation for the new anchor tenant.
Stream’s final report said the price for the White & Case lease came in at more than $105 triple-net, which it called “a new benchmark for redeveloped Trophy” office. That deal surpassed the previous high-water mark: Sidley Austin’s $98-per-SF triple-net prelease at BXP’s planned trophy development at 2100 M St. NW.
Simpson Thacher's current D.C. office is at 900 G St. NW in Gallery Place. It inked 40K SF at the property in 2015 with a 15-year term. A Lincoln Property Co. brochure for the office building shows nearly the entire 113K SF footprint coming available in July 2030, with a note that offers tenants the “ability to control the entire building.”
The D.C. lease, if executed, would be the second time this year the firm inked a relocation to a key U.S. market.
In New York City, Simpson took a nearly 1M SF prelease at Extell Development’s planned Midtown office tower, expected to deliver in 2028.
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