construction on the four-building multifamily complex’s final
two residential towers and to build an adjacent parking deck.
At 1,000 units, Presidential City is the largest apartment
complex in Philly, but if original developer John McShain had
fully realized his own vision, it would be even bigger. Beginning
in the 1950s, McShain planned to build towers named after all
of the Presidents of the United States, beginning with George
Washington. He only got as far as James Madison before selling
the land and moving on. By the time Post Brothers acquired
the complex in 2012 for $80 million, it had lost a great deal of
its original luster. The new owners launched an ambitious
redevelopment program in 2014 to reinvent Presidential City
for the 21st century.
The redevelopment represents a boon for a section of
Philadelphia that is poised to evolve as a live-work-play destination
on the city’s outskirts: City Avenue. Phase 1, which included redeveloping Washington Tower’s 180 units and Madison Tower’s 265
units, has been completed. Now under way is work on Phase 2,
including renovations of Jefferson Tower’s 331 units and Adams
Tower’s 242 units.
EXIT THE POST, ENTER FANNIE MAE
Down came the former headquarters of the Washington Post—just a
few blocks from the White House—in the spring of 2016, and in its
place will rise Midtown Center, an 862,000-sf mixed-use development at 1150 15th St. NW that will be anchored by the national
headquarters of Fannie Mae. Making the launch of construction
possible for Carr Properties was a $525-million loan syndicated
among seven lenders.
Carr had already planned a large-scale office/retail development on the site of the Post headquarters when it acquired the
four-building complex from Graham Holdings, the newspaper’s
former parent, for $157.8 million in March of 2014. Then Fannie
Mae’s decision later that year to sell its own headquarters brought
the GSE into the picture. Fannie’s 750,000-sf commitment, made
in 2015 represented the largest non-government lease in the history of Washington, DC office space.
Representing Carr in the construction loan were Stroock’s
Steven Moskowitz, Jeffrey Keitelman, Marc Hurel, Mayer
Greenberg, Joseph Miller, Gail Suchman, Kelly Booker, Mitchell
Snow and Deborah Bernstein. Midtown Center is scheduled for
completion in 2018.
MORGAN SHOOTS FOR THE STARS IN BULK DEAL
In one of the largest multifamily deals in the region, and one of
the largest single transactions involving a private seller to ever
take place in Maryland, Morgan Properties added 2,826 apartment units to its holdings. Known collectively as the Star Portfolio,
the 13 assets involved in the
$316-million purchase are
located through Maryland,
Pennsylvania and the
The deal is a continuation
of Morgan Properties’
regional shopping spree over
the past few years, particularly
in Maryland, where its portfolio now counts over 16,000
units in 42 assets. Scott
Melnick and David Oakley of
Berkadia, which has advised
the buyer on more than $3 billion of transactions, handled the Star deal for Morgan Properties,
along with the firm’s president, Jonathan Morgan, and vice
president, Rimas Petrulis.
Greg Patcella of Deutsche Bank Securities Inc., represented
the seller, SouthStar/TriStar Management, along with
Southstar’s CFO, Gina Williams. Morgan Properties is implementing an extensive value-add renovation program on the
properties, all of which are garden-style assets with an average
age of 30.
A $150M MEMPHIS RELOCATION AND ADAPTIVE REUSE
In June of 2016, Newmark Grubb Knight Frank secured the
315,450-sf lease relocation and adaptive reuse project for
ServiceMaster. The company plans to transform Downtown
Memphis with its 1200-person global corporate headquarters
and Innovation Centre. NGKF’s Neal Golden and Aaron
Sommer, along with in-house rep Peter Tosches, led the Fortune
1000 company through an exhaustive, two-year site selection
process that has finished with plans to rejuvenate a former
urban shopping center 15 miles from its current base.
Currently, ServiceMaster’s operations are spread across four
buildings in the suburban Poplar Avenue Corridor. Now, Peabody
Place will house its iconic workspace and Innovation Centre, to be
used for talent recruitment, marketing and product development.
The property is to be rebranded to “ServiceMaster Center” as part
of a naming and marketing opportunity.
ServiceMaster Innovation Centre