This week’s DC trade sheet (April 4, 2022)

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Trammell Crow is partnering with Principal Real Estate Investors to build a major new life sciences development in Frederick.

Courtesy of Gensler

Rendering of the proposed life sciences facility in Frederick, Maryland

Plans for the project, named Jefferson Technology Park, include two 145K SF cleanroom production buildings and two three-story 100K SF “laboratory, research and biodiscovery buildings,” according to a press release.

The labs will also be connected by a 10K SF amenity center, which will include coworking space, conference rooms, a fitness center and a cafe.

“Jefferson Technology Park is a unique life sciences campus development opportunity that will further strengthen Frederick as the northern anchor of the I-270 life sciences corridor,” said Rob Klinkner, Eastern States Region General Manager for Principal in the release. “Jefferson Tech will be an exciting addition to the market, and we look forward to continuing our strong joint venture partnership with Trammell Crow to deliver on this project.”

The developers expect construction to begin in September and be completed by the end of 2023. CBRE’s Frank Graybeal and Kevin Reap have been retained by the joint venture to handle marketing and leasing.

The project is a major investment in the life sciences corridor along I-270, which is the third fastest growing market in the nation, according to CBRE.

The new Trammell Crow and Principal campus joins a 2M SF life sciences cluster in Frederick, developers say.

SALES

Reserved area

Universal North and Universal South, two 1960s office buildings across from the Washington Hilton, seen in October 2018

A high-profile Philadelphia developer made its first foray into Washington, DC, this week, snapping up two office buildings owned by JBG Smith for just over $200 million. Post Brothers, a private multifamily developer, acquired the Universal North and Universal South offices at 1825 and 1875 Connecticut Ave. NW thanks in part to a loan from a subsidiary of Mack Real Estate Credit Strategies totaling $129.7 million. The buildings, which total 762K SF, are across T Street from the Washington Hilton Hotel north of Dupont Circle. They appear to be prime candidates for an office-to-housing conversion, given the district’s focus on strategy amid a historically high office vacancy rate, advanced age of properties and the specialty of their new owner.

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Finmarc Management has sold an 8.8 acre parcel of Herndon Corporate Center to Stanley Martin Cos. in a $21.34 million deal, the seller announced Wednesday. The property currently contains four office buildings, three of which Stanley Martin plans to demolish immediately and a fourth which the developer plans to demolish later. In their place, Stanley Martin plans to build 55 traditional townhouses and 56 two-by-two townhouses. The developer plans to begin construction later this year. Paul Norman Jr. and John Pellerito of Cushman & Wakefield represented Finmarc in the deal.

CONSTRUCTION

Reserved area

Macy’s closed at Landmark Mall in Alexandria

Foulger-Pratt plans to begin the process of demolishing the Landmark mall early next month, Alexandria Living magazine reported. The developer will demolish all existing structures except for a parking garage, paving the way for a 4.2 million square foot redevelopment anchored by a new Inova hospital. Renamed West End, the site is also expected to feature up to 2.7 million square feet of residential space and 285,000 square feet of commercial space when complete.

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Monday Properties, owner of several large office buildings in Rosslyn and elsewhere in the region, delivered its first apartment building in Northern Virginia this week. The 300-unit property at 2000 North Beauregard Street is located in an opportunity zone and received a $66.8 million construction loan from EagleBank. Monday Properties recently expanded its multi-family portfolio, with 3,600 units currently in development, the real estate company said in a press release.

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Liberty Place, a 71-unit affordable housing project in the Mount Vernon Triangle, opened Tuesday with a ribbon-cutting ceremony attended by Mayor Muriel Bowser and other officials. Fifty-three of the units were retained for households earning less than 50% of the region’s median income, along with 14 permanent supportive housing units and four units for households earning 60% or less of the AMI. The affordable project is part of the Central Washington planning area, where Bowser is calling for 1,040 new affordable homes by 2025. The new development brings the planning area to 27% of that goal.

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Reserved area

Courtesy of Douglas Development

Rendering of the new industrial building at 2266 25th Place NE

Douglas Development this week broke ground on a new 33K SF spec industrial development in DC, one of the first such property types to begin construction in the city in years. The property at 2266 25th Place NE is expected to complete construction in the fourth quarter of this year. John Dettleff, executive general manager of JLL’s Metro DC industrial team, oversees development leasing, and he said bisnow Tuesday, he expects strong demand for the facility thanks to its proximity to dense residential neighborhoods in need of last-mile delivery solutions.

FUNDING

Bethesda-based Excelsa Holding raised a $154 million real estate equity fund from international investors in just three months, the Washington Business Journal reported. The firm specializes in value-added and core-plus properties and primarily seeks to invest in multi-family properties. Excelsa was founded by Bassam Yammine, former co-CEO of Credit Suisse Middle East and North Africa. Although Excelsa is based in the DC area, the new fund will be used for opportunities in both Greater Washington and the Sun Belt, WBJ reported.

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