EYA has reached a significant milestone in its plans to redevelop the long-vacant Rockshire Village Center in Rockville, having closed on the acquisition of the property this week. The developer is set to transform the 7.3-acre site into a vibrant community featuring 60 homes, including 31 single-family homes and 29 townhomes. Alongside the residential units, the redevelopment will also include 5,200 square feet designated for office or retail tenants, a public park, and a playground, with construction slated to begin next month.
Aakash Thakkar, Chief Acquisitions Officer at EYA, expressed the importance of revitalizing the site, which has remained dormant for over a decade within a bustling community. “For years, this site has sat dormant within a thriving community,” Thakkar stated. “We worked closely with the city and community to transform this outdated commercial site into a vibrant, walkable neighborhood.” The anticipated delivery of the project is expected by 2027, marking a significant milestone in the area’s development.
The redevelopment plans for Rockshire Village Center have been in discussions since 2023. Previous attempts to revitalize the property took place as early as 2016, when the property owners proposed a residential development. After a study was ordered by the city of Rockville in 2019 to determine the site’s future, the current plans by EYA have been widely welcomed.
In other commercial real estate news, Pennsylvania Avenue’s Market Square has seen considerable leasing activity, with 85,000 square feet leased across 14 deals in just the first half of the year. JLL announced the impressive leasing figures after PRP Real Estate Investment Management acquired the 707,000-square-foot property for $323 million in March 2024. Following this acquisition, the leasing efforts have surged, increasing the property’s occupancy from 85% to 95% leased, aided by the efforts of JLL’s Evan Behr, Mac Hall, and Jeanette Ko who represent PRP in the leasing process.
Moreover, Qui Qui, a Puerto Rican restaurant, is making a swift return after being closed for less than a month. The eatery has secured just over 2,000 square feet at 3227 Georgia Ave. NW in Park View, taking over from the Georgian restaurant Tabla, which closed earlier this year. Qui Qui is planning for a mid-August opening, having served its last meal at its former Shaw location on June 22. Gabriel Miller from Miller Walker represented the landlord, while Ken Johnson from Willard Retail represented the tenant in this transition.
On the financing front, HH Fund has successfully obtained a $21 million bridge loan to support its project at The Lanes at Union Market, located at 400 Florida Ave. NE. This two-year, interest-only loan, provided by M&T Realty Capital Corp, will assist in the transformation of a 110-unit mixed-use building into student housing, following HH Fund’s purchase at a foreclosure sale for $38.3 million in May 2024. The press release revealed that about half of the units are already occupied by local students, showcasing the demand for student accommodations in the area.
In another financing development, Kairos Investment Management Co. secured a $38.3 million loan for a downtown office building acquired at the end of 2023. The loan, provided by Harbor Group International, strikes a balance for refinancing and funding renovations at 1250 Eye St. NW. Kairos purchased the 180,000-square-foot building from Rockville-based DSC Partners for $36 million in December 2023, with the new loan amounting to approximately $20 million more than the previous debt balance.
In sales news, Peterson Cos. has completed its first apartment building acquisition in D.C. The firm purchased The Batley, a 432-unit mixed-use building in the Union Market area from JBG Smith for $155 million, as recorded in D.C. deed documents. JBG Smith had acquired the property in 2021 for $205 million and was seeking a resale price of $180 million earlier in the year, illustrating the fluctuations in property values in the area.
In addition, Sage Ventures, based in Baltimore, acquired two office buildings in Fairfax’s Seven Corners for $33.7 million. The properties, totaling 410,000 square feet, were sold by BoundTrain and are currently about 76% leased. Sage Ventures has engaged Newmark to assist with the leasing of the property. Built in 1972 and 1988, these towers originally served as the headquarters for First Virginia Bank, reflecting the historical significance of the structures.
Lastly, Gensler has announced the addition of Michael Marshall as a design director in its Washington, D.C. office. Marshall, who previously led his own architectural firm for over 30 years, brings a wealth of experience to Gensler, where he will contribute to design strategy across various projects, including civic, institutional, and multifamily developments. Before joining Gensler, Marshall’s firm was involved in many high-profile projects in the region, such as Amazon HQ2 and the redevelopment of the Reeves Center.
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