MetLife has sold a 360,000-square-foot office building located near Arlington’s Courthouse Metro station, paving the way for a significant transformation into residential spaces.
The buyer, Quadrangle Development Co., acquired the 1990s-era property situated at 1320 N. Courthouse Road.
Transwestern senior analyst Rowan Miller, part of the team representing MetLife in the deal, announced the transaction on LinkedIn.
In his post, Miller expressed admiration for Quadrangle Development Corporation, commending their seamless execution in the acquisition and expressing excitement about the forthcoming office-to-residential conversion.
Unfortunately, specific details about the sale price have yet to be disclosed, and it has not appeared in any property records.
Both Miller and Quadrangle Development declined to comment on the particulars of the deal when reached for inquiries.
The Washington Business Journal previously reported in October that MetLife was looking to sell the property, which was only 18% leased at that time, inhabited by three tenants.
Transwestern marketed the building as an opportunity for either a hotel or residential conversion.
This transaction was classified as a ‘lender-driven short sale.’ In this scenario, rather than taking possession of the property, the lender permitted the owner to sell it for less than the outstanding loan balance, accepting the proceeds as a loss.
Miller shared that the asset received extensive interest, with more than 20 offers submitted.
He also acknowledged fellow brokers on the deal, Gerry Trainor and Jim Cardellicchio from Transwestern.
In other market activities, Douglas Development finalized the acquisition of a 135,000-square-foot office building located at 1750 H St. NW, just around the block from Farragut West, for $28.8 million.
The seller in this transaction was State Farm Life Insurance Co.
With a recently renovated facility and a weighted average lease term of 9.7 years, Douglas Development views this purchase as a significant opportunity.
Ryan Ferguson, Manager of Douglas Capital Markets and Finance, noted the strategic advantage of securing a newly renovated, boutique Class A office asset just two blocks from the White House.
Ferguson worked alongside his colleagues Matthew Jemal, Jordan Klinger, and Drew Turner on the transaction, with legal support from Sholom Yaffa from Grossberg Yochelson Fox & Beyda LLP.
In a notable auction, a trio of investors holding interests in a 405,000-square-foot office building near the White House acquired the property through a credit bid at a foreclosure auction.
Farallon Capital Management, GreenBarn Investment, and FarmView Ventures paid $60.5 million for the property at 1625 Eye St. NW, which was previously owned by Westbrook Partners and American Real Estate Partners.
Real Estate Alert documented that this sale valued the building at $140 million—marking a 46% decrease from its sale price in 2019.
In leasing news, Meta has signed a 76,000-square-foot lease for a warehouse in Sterling to support its local data centers.
The warehouse, located at 44211 Mercure Circle, was acquired by local data center expert Chuck Kuhn from JK Moving Services, who also owns several other warehouses in the area.
Meta’s lease is structured for five years, with an additional five-year option.
Additionally, law firm Manatt, Phelps & Phillips has committed to a 14-year lease for 55,000 square feet in the new trophy office building, 17xM, located at 1700 M St. NW.
Skanska, the building’s developer and owner, announced the lease but has not disclosed the specific terms.
The 334,000-square-foot tower was completed last year and is also the new home for law firm Gibson Dunn & Crutcher, which preleased a significant 164,000 square feet in 2021.
Finally, in financing news, a 52-unit affordable housing project in Ward 3 received a robust $26.7 million for energy-efficient improvements.
The financing was a collaborative effort among DC Green Bank, The Community Preservation Corp., American Housing, Amazon, and JPMorgan Chase.
These upgrades at Townley Court, located at 2315 40th Place NW, aim to fully electrify the units, add solar panels, install electric vehicle charging stations, and enhance energy efficiency throughout the building.
The projected outcome is a nearly 10% reduction in greenhouse gas emissions.
Completion of these upgrades is anticipated by September 2026.
image source from：bisnow
