SEC Moving HQ to Douglas Development’s Long-Planned DC Office Building
The Securities and Exchange Commission will anchor a new development in Washington, D.C., under a lease between the General Services Administration (GSA), the federal government’s property manager, and a joint venture of Douglas Development and Midtown Equities. The financial regulatory agency has agreed to take 1,229,345 square feet at 60 New York Avenue NE, Commercial Observer has learned.
The move means the owners’ long-planned project can advance.
Douglas Development will lead the overall development execution, including the design, entitlements and construction of the planned project.
“The lease triggers the redevelopment of the property,” Norman Jemal, managing principal of Douglas Development, told Commercial Observer. “The building will have Class A features, including high ceilings, and will meet the Environmental Protection Agency’s ENERGY STAR requirements and will be LEED certified.”
The lease was for 15 years with an option to extend an additional 10 years. It will serve as the new headquarters for the SEC.
SEC currently operates out of 1.3-million-square-feet of space across three buildings at 100 F Street, NE; 600 Second Street NE; and 700 Second Street, NE, collectively Property Group Partners’ Station Place.
“Our vision to redevelop this expansive, free-standing site began 30 years ago when we first purchased the land, and it’s exciting to finally see it come to fruition,” Jemal said. “We worked with a world-class tenant in GSA and believe this project will be a catalyst for the continued growth and opportunity for the surrounding community that is north of New York Avenue.”
The new SEC headquarters will accommodate more than 4,500 employees. The building is close to the Metro and to other federal agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Department of Justice.
“We appreciate GSA’s efforts over many years to secure a new headquarters lease in support of the SEC’s critical mission,” Ken Johnson, SEC’s chief operating officer, said in a release. “We also look forward to continuing to partner with GSA on this process going forward to address the SEC’s space needs as they evolve.”
Brian Sullivan at JLL represented the landlord in the deal, while the tenant was represented by Todd Valentine, David Lipson and Neil Levy at Savills and Kevin Terry at GSA.
The ground breaking is scheduled for June 2022. There is an additional opportunity for more than 600,000 square feet of office space or 600 residential units, or a combination of the two at the development site.
Keith Loria can be reached at Kloria@commercialobserver.com.