StonebridgeCarras and Walton Street Capital today completed the sale to Northwestern Mutual of Two Constitution Square in Washington, D.C. for $305 million. The 589,000 square foot office building is leased to the U.S. General Services Administration (GSA) for the Department of Justice. The building is located at 145 N Street, N.E. in Washington, D.C.’s rapidly developing NoMa (North of Massachusetts Avenue) neighborhood.
Two Constitution Square was completed earlier this year and DOJ has accepted the first three phases of a seven-phase tenant construction project. DOJ’s construction will be completed later this summer and the agency will fully occupy the building by late fall. Two Constitution Square has completed its documentation with the U.S. Green Building Council for a Platinum Certification under the LEED for Core and Shell program and expects formal certification this summer. Northwestern Mutual has retained StonebridgeCarras Management to continue managing the building.
“This sale to Northwestern Mutual culminates more than two years of extraordinary work and circumstances, given the incredible changes in the capital markets during this period,” said StonebridgeCarras Principal Doug Firstenberg. “Having an outstanding long-term institutional owner acquire this building is a testament to Constitution Square and further demonstrates that the NoMa neighborhood is fast becoming a landmark location for tenants and investors.”
“Two Constitution Square represents the type of long term quality investment that typifies Northwestern Mutual’s investment philosophy,” said Matt Ascher, Director of Northwestern Mutual Investment Management Company. “The location, building, and the long-term lease with the GSA make this an outstanding value-add to our investment portfolio. In addition, the building’s pending Platinum Certification furthers our commitment to ‘greening’ our portfolio.”
“This is one of the highest quality buildings delivered to the Washington, D.C. office market in recent years, leased to the best credit tenant in the world for the next 15 years,” said Bill Collins, Executive Managing Director of Cassidy Turley, which represented the seller. “These opportunities don’t come around every day, so congratulations to Northwestern Mutual for adding Two Constitution Square to its real estate portfolio.” StonebridgeCarras and Walton Street were represented in the transaction by Cassidy Turley and Northwestern Mutual was represented by Cambridge Property Group.
In addition to the Two Constitution Square building, the 1.6 million SF first phase of Constitution Square is the largest private development in Washington, D.C., including:
– One Constitution Square, a 329,251 SF office building now entirely pre-leased to GSA for its headquarters operation;
– a residential building with 440 luxury apartments;
– a 50,000 square foot Harris Teeter grocery store;
– a 204-room Hilton Garden Inn with upscale meeting facilities; and
– 30,000 square feet of street-level retail space.
The project, a joint development of affiliates of StonebridgeCarras of Bethesda, MD and Walton Street Capital of Chicago, IL, also has one million additional square feet of future office, residential, and retail development. .
NoMa is one of the last remaining areas in Washington, DC that offers opportunities for large-scale infill development. Constitution Square, situated at the epicenter of the dynamic NoMa submarket, unites office, residential, hotel, and retail space with a unique location. The property is adjacent to both entrances of the New York Avenue Metrorail station and at the commercial, vehicular, and pedestrian heart of NoMa.
About StonebridgeCarras, LLC
StonebridgeCarras, LLC is a privately held real estate investment and development firm based in Bethesda, MD focusing primarily on developing mixed-use properties in the Washington, D.C. metropolitan region. During the past 20 years, the principals of StonebridgeCarras, LLC have been involved in the acquisition, development, joint venture, financing, and disposition of real estate assets in the Washington area exceeding $5.0 billion in value.
About Walton Street Capital, L.L.C.
Walton Street Capital, L.L.C. was founded in 1995 and is a premier private real estate investment company operating in the U.S. and abroad. Since its inception, Walton Street has received equity commitments in excess of $4.5 billion from public and corporate pension funds, foreign institutions, endowments and foundations, trusts, and high net worth individuals. Through its series of opportunistic and value-added funds, Walton Street has invested or committed to invest more than $3.5 billion of equity in approximately 160 separate transactions totaling over $13 billion of gross assets in the U.S. and abroad. These transactions include the development and acquisition of office, hotel, retail, industrial, multi-family, for-sale residential, senior and student housing, and golf assets through individual, portfolio, and company-level transactions.
About The Northwestern Mutual Life Insurance Company (Northwestern Mutual)
Northwestern Mutual has helped clients achieve financial security for more than 150 years. As a mutual company with over $1 trillion of life insurance protection in force, Northwestern Mutual seeks to share its gains with policyowners and deliver consistent and dependable value to clients over time. Northwestern Mutual is one of the largest real estate investors in the nation, with investments in commercial mortgages, equities and securitized investments across all major property types, and with real estate professionals providing origination, underwriting, and service in regional offices across the country. Further information about Northwestern Mutual can be found at http://www.northwesternmutual.com, with details about the company’s real estate investing available at http://www.northwesternmutualrealestate.com.