A new real estate firm that is looking to reposition office assets has inked its first deal in Old Town Alexandria.
Silverline Equities, founded in March 2024 by Stream Realty and WashREIT alum Anthony Chang and local real estate veteran Barry Bass, has invested preferred equity in the renovation and recapitalization of the 1980s-era office building at 225 Reinekers Lane.
The 130K SF office building at 225 Reinekers Lane in Alexandria.
With the deal, Silverline is now a partner with owner Altus Realty on the 130K SF office building near the King Street-Old Town Metro station.
The partners declined to disclose the size of the investment, but they said it will allow Silverline and Altus to build out new spec suites in the building and launch additional leasing initiatives.
“We’re coming in with fresh equity to finish their business plan, which we totally agree on,” Chang told Bisnow.
Altus acquired the Old Town property in partnership with Acentris in January 2020 for $44.7M.
The owner has signed 40K SF of leases over the last two years, and it is now about 70% leased, Chang said. He said he had known Altus’ executives previously and it was one of the firms he wanted to work with after launching Silverline.
Although the office market has taken a tumble over the past five years, Chang said there is competition for office investment opportunities from those who are bullish about the future of the sector. He said Silverline was the “runner-up” on multiple deals last year before closing its first one.
“It’s a little bit of an emotional roller coaster,” Chang said.
SALES
Nuveen sold a 197K SF Arlington office property it has owned for nearly two decades. The real estate arm of the Teachers Insurance and Annuity Association of America offloaded 4350 N. Fairfax Drive, two blocks from the Ballston Metro station, to Arlington-based Rooney Properties for $20.2M, Bisnow first reported. The price is well below the $85M that TIAA paid in 2006.
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Florida-based Galium Capital purchased a 243-unit apartment building in Downtown Silver Spring. The Miami-based private equity firm paid $71M for Central at 8455 Fenton St., the Washington Business Journal reported. Grosvenor Group, which developed the apartment building in 2017, was the seller. The property also has 15K SF of retail, with tenants including &Pizza and Orangetheory Fitness.
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The 243-unit apartment building at 8455 Fenton St. in Downtown Silver Spring.
Easterly Government Properties purchased a 292K SF office building at 1200 First St. NE in NoMa for $119M, according to D.C. deed records. The seller was Principal Real Estate Investors, which had purchased the property in 2007 for $94.5M. The property is largely leased by the D.C. government, the WBJ reported.
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Azora Exan Capital purchased an 84K SF property at 1666 Connecticut for $15.8M, according to D.C deed records. The deed shows the sale closed on March 31, and the seller was ASB Real Estate Investments. ASB had purchased the property in 2019 for $30.5M, according to deed records. The 1960s-era property was renovated in 2021, according to LoopNet.
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Dilan Investments paid $9.4M for an 84K SF East End office building, D.C. deed records show. Pembroke was the seller of 1000 Vermont Ave. NW. The Boston-based investment firm had purchased the property in 2008 for nearly $40M. Its tenants include Gregorys Coffee, American Academy of Nursing and multiple nonprofits like World Affairs Councils of America and Justice Information Resource Network, according to their websites.
LEASES
Law firm Lowenstein Sandler more than doubled its footprint to just over 41K SF in Foggy Bottom during the first quarter, the WBJ reported. The firm, with 22 local attorneys and trade specialists, has been at BXP’s 2200 Pennsylvania Ave. NW since 2014.
MILESTONES
Mayor Muriel Bowser joined healthcare leaders to cut the ribbon on a new medical center at St. Elizabeths East this week. Cedar Hill Regional Medical Center GW Health, which received $434M in public and private investment, is a 406K SF facility with 136 beds. It is the first new hospital built in the District in 25 years. Opening its doors to patients next week, Cedar Hill is set to be integrated with the George Washington University Hospital and two new health centers in Wards 7 and 8.
Jon Banister contributed to this story.
