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Washington Business Journal
Office building blues: How far will valuations fall in Fairfax County?
Crisis. Wave. Wall. Cliff. Doom loop. Death spiral. Reckoning. Time bomb.<\p> It’s not difficult to find such narratives prevalent in the world of commercial real estate. The gist is simple: Values are tanking, we can’t refinance, owners and banks are increasingly writing down huge losses. <\p>
IRS announces when payments on ERC claims will resume
The Internal Revenue Service plans to deny tens of thousands of improper Employee Retention Credit applications even as it promises to renew processing legitimate claims.<\p> The agency in an announcement this week said it had taken the time since its Sept. 14 moratorium on processing new ERC applications to analyze the more than 1 million ERC claims filed in 2023 — and found that between 60% and 70% showed an unacceptable level of risk.<\p>
Here's why The Boro in Tysons swapped out one movie chain for another
The Meridian Group opted to part ways with ShowPlace Icon Theatre, one of its first anchor retailers at The Boro in Tysons, with the hope of replacing it with something more engaging.<\p> The Bethesda developer didn’t want just another movie theater taking up one of the biggest blocks of space at its mixed-use development by the Greensboro Metro station, per Meridian spokeswoman Tanya Graves. It wanted an operator that would also host events and serve as an added amenity for office tenants and residents.<\p>
Ex-Pr. George's councilmember charged in embezzlement scheme
Days after he abruptly resigned from the Prince George’s County Council, longtime lawmaker Jamel “Mel” Franklin was charged Thursday with embezzling more than $132,000 from his campaign fund to cover personal expenses, including credit card debt, hotel stays and cosmetic procedures.<\p> The Office of the Maryland State Prosecutor charged Franklin with 20 counts of felony theft scheme, embezzlement and perjury tied to allegations that he misused funds from his “Friends of Mel” campaign fund over a three-year period and falsified information on campaign finance reports to cover up the fraud. <\p>
New apartments to replace old office building near Landmark Mall
Snell Properties has won approval to tear down an aging office building near the former site of Alexandria’s Landmark Mall and redevelop the property with apartments.<\p> The City Council approved a rezoning and development special use permit for the site, which comprises about two acres at 6101 and 6125 Stevenson Ave., at a June 15 public hearing. That paves the way for Arlington-based Snell to demolish the existing five-story, 1980s-era office and construct a seven-story, 270-unit apartment building.<\p>
What's next in the NAR commission lawsuit settlement?
Some big deadlines are on the horizon for the class-action lawsuits that swept the residential real estate industry over the past year. <\p> The conclusion of these lawsuits could bring about significant changes to how homes are bought and sold beginning in the later part of 2024.<\p>
TTR Sotheby's Mark Lowham lists his own McLean home for $7.95M
“For-sale-by-owner” is a tricky proposition, often not recommended for the average homeowner due to the complexities of the process, from researching comps and choosing just the right list price to marketing to the reams of paperwork.<\p> Mark Lowham is not your average homeowner.<\p>
Less than 10% of office stock in major metros considered 'prime' space
Less than 10% of the office space across some of the nation's major metropolitan markets is considered "prime" real estate, the type of property today's tenants prefer.<\p> A recent analysis by CBRE Group Inc. (NYSE: CBRE), the findings of which were shared first with The Business Journals, found 830 buildings across 57 cities analyzed could be categorized as "prime" properties, representing 8% of all office square footage in those markets. Although the definition of "prime" can vary by market, sometimes dramatically, the analysis set out to identify the highest-quality buildings in each city and examine how that segment of the market is performing relative to the broader office sector.<\p>
D.C. office building sells at auction for one-third of assessed value
State Farm Life Insurance Co., which moved to foreclose on the office building at 1750 H St. NW in April, acquired the building at a foreclosure auction Thursday for $17.6 million.<\p> Office Properties Income Trust (NASDAQ: OPI), which owned half of the property in a joint venture, wrote off the building in the fourth quarter, and the JV defaulted on its loan. The note, which was set to mature on Aug. 1, 2027, had a balance of $32.7 million, per the property’s foreclosure notice.<\p>
Skyland Town Center's final phase is underway. Here's a look.
The final phase of Skyland Town Center, a mixed-use development in Southeast Washington more than a quarter century in the making, is underway.<\p> D.C. Mayor Muriel Bowser on Thursday joined representatives of the development team — WC Smith, Rappaport, Washington East Foundation and the Marshall Heights Community Development Organization — to break ground on the third and last piece of Skyland, to include 126 for-sale townhomes, a 75-unit affordable senior apartment building, roughly 10,000 square feet of retail and a public square and plaza.<\p>
Troubled loan trend reaches high-profile Fairview Park building
A $90 million note secured by the office high-rise at 2941 Fairview Park in Fairfax County has been transferred to a special servicer, according to notes shared with bondholders. <\p> Menlo Equities, the California real estate company that bought the building in 2020 for $97.59 million, requested the procedural move, saying the debt is set to mature July 1 and it has not been able to refinance. Greystone, the special servicer, will work with the borrower and lender to begin discussions about modifying the loan.<\p>
Electrical distributor expanding Upper Marlboro HQ it just moved into
Capital Lighting and Supply LLC, which does business as Capital Electric, won site plan approval to expand its brand-new warehouse-and-office headquarters facility in Upper Marlboro by nearly half.<\p> The Prince George’s County Planning Board, a land use regulatory agency, on June 20 gave Capital Electric the green light to add about 162,000 square feet of light industrial warehouse space to its 363,000-square-foot building at 8711 Westphalia Road — a 45% increase over what's currently there.<\p>
Arlington's CAES Systems to be acquired by tech giant for $1.9B
CAES Systems Holdings LLC, an Arlington aerospace company that manufactures radar equipment and components for the U.S. military, is being acquired by tech and defense giant Honeywell International Inc.<\p> Charlotte, North Carolina-based Honeywell (NASDAQ: HON) announced Thursday that it is buying CAES from the Boston private equity firm Advent International for $1.9 billion in cash. <\p>
Old Town Alexandria's newest hotel opens for business
Old Town Alexandria's newest hotel, Hotel Heron, is ready to make its long-awaited debut. <\p> The six-story, 134-room property at 699 Prince St. officially opened for business on Thursday, its management company, Aparium Hotel Group, announced. <\p>
Emergent to sell Baltimore facility as part of ongoing restructuring
Emergent BioSolutions Inc. (NYSE: EBS) has inked a deal to sell one of its Baltimore plants, its latest move in an ongoing effort to streamline operations and improve profitability. <\p> The Gaithersburg company said Thursday it intends to sell its Camden facility to Bora Pharmaceuticals Injectables Inc., an affiliate of Taipei, Taiwan’s Bora Pharmaceuticals Co. Ltd., for about $30 million. About 350 of its employees are expected to join Bora as part of the deal, further shrinking Emergent's headcount just weeks after the company said it was laying off 300 people and eliminating another 85 open positions. <\p>
D.C. is officially vying to host the NFL draft
The District is among a handful of U.S. cities vying to host the 2027 NFL Draft, a potentially mammoth economic boost to D.C.’s hospitality industry.<\p> Detroit hosted the 2024 draft in April, attracting several hundred thousand visitors and generating a net economic impact of more than $160 million, per the Anderson Economic Group. An event of that scope would be a potentially huge shot in the arm for D.C.’s hospitality industry as the region awaits a more robust rebound from international tourism and large corporate travel.<\p>
Owner surrenders keys for New Hampshire Avenue office building
The recently renovated office building at 1200 New Hampshire Ave. NW has changed hands in a deed in lieu of foreclosure.<\p> Brookfield Properties took possession of the 290,835-square-foot D.C. building from an affiliate of GreenOak Real Estate Advisors, per documents filed with the D.C. Recorder of Deeds on Tuesday. GreenOak had purchased the building for $174.5 million in 2018 before its merger with Bentall Kennedy.<\p>
D.C.'s Vanda Pharmaceuticals again rejects buyout overtures
Vanda Pharmaceuticals Inc.’s board appears determined to keep the D.C.-based drugmaker independent, at least until the right offer comes along.<\p> Late Wednesday, the company announced that its board of directors, in consultation with legal and financial advisers, has rejected the latest buyout offers from two suitors, saying both “substantially undervalue Vanda and are not in the best interests of the company and its shareholders.”<\p>
Folger Shakespeare Library to reopen after $80.5M renovation
Wherefore art thou Romeo? That question is about to become a little easier to answer. <\p> The Folger Shakespeare Library at 201 E. Capitol St. SE will reopen to the public Friday after an $80.5 million renovation, including a new 12,000-square-foot wing of exhibition halls. The library has been shuttered since March 2020.<\p>
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