The Wharf's First Office Tenant Buys Its 3 Floors
Nearly five years after signing its first office lease at The Wharf, the development team has sold that space to its anchor tenant.
The American Psychiatric Association Thursday announced it purchased the top three floors it occupies at The Wharf's 800 Maine Ave. SW office building. The deal closed for $45M, according to documents posted Friday to the D.C. Recorder of Deeds.
“The purchase of the headquarters is a wise investment for the APA and its members,” APA President Dr. Bruce Schwartz said in a release. “This purchase increases our visibility to the general public and solidifies our position in the nation’s capital where we can best influence and advocate for the laws and policies that impact our profession and our patients.”
The Hoffman-Madison Waterfront development team signed APA in July 2015 for 63K SF, the first in a series of office leases at the Southwest D.C. development. With its move across the river from Arlington, APA signed a 10-year lease that gave it the option to buy the space.
Hoffman & Associates Chairman Monty Hoffman, in a statement provided to Bisnow, said the developer does not typically include purchase options in its leases, but he is excited APA decided to buy its space and show its belief in The Wharf.
"The option to purchase the 800 Maine office space for their headquarters was negotiated as part of their original lease agreement, which has not traditionally been a part of our business model," Hoffman said.
The Wharf has sold residential condos, but this is the first commercial piece of the project the developers have sold. The team in June closed an $800M refinancing deal for Phase 1, and in September it landed an $847M construction loan for Phase 2.
The Wharf's first phase delivered in October 2017. Its two office buildings have leased to several major tenants including Van Scoyoc Associates, Cornerstone Government Affairs, MakeOffices, Washington Gas and Fish & Richardson. The second phase, which broke ground last year, will be anchored by Williams & Connolly.
UPDATE, MARCH 16, 11:30 A.M. ET: This story has been updated to include the sale price.