Perseus Plans to Replace Bethesda Office Property With Multifamily
Perseus TDC has acquired a five-story office tower in Bethesda, Md. with plans to demolish and replace the building with a multifamily community.
The Washington D.C.-based Perseus purchased the 65,000-square-foot building at 4405 East-West Highway from Klinedinst Management.
Plans call for a 10-story, 300-unit apartment complex, following a popular trend in the Washington, D.C. region.
“The building was actually built as a multifamily property by the Klinedinsts in 1959 and was later converted to office,” Nihar Shah, vice president of development at Perseus TDC , told Commercial Observer. “Due to its age and maintenance costs, it no longer remained competitive with other office product in the submarket.”
It’s been well-documented that Bethesda, and the mid-Atlantic region in general, needs additional housing to satiate the demand and growing population, and has looked to add additional density throughout the city in accordance with its Downtown Sector Plan.
“We thought it is in a fantastic location close to public transportation, retail and amenities to be a compelling conversion from an older office product to a new multifamily development,” Shah said. “Because we are replacing a more than 70-year-old building, it will be more sustainable for our environment and future generations.”
The property, which will include 8,000 square feet of retail, is located within the Pearl District of Bethesda, a neighborhood within the city that residents and officials plan to transform into a more active area.
“We will be contributing to Bethesda’s Park Impact Program in hopes the jurisdiction beautifies public parks throughout the city and provides more recreation facilities for everyone to enjoy,” Shah said. “Within the property, we will have a rooftop pool and common areas including places to work from home. We will have areas to tune and store the residents’ bikes, a dedicated area for pets, and hopefully a close-knit community of residents that want to serve and improve their communities and themselves.”
The property is near major employment hubs, such as Marriott’s new corporate headquarters, the National Institutes of Health, and Walter Reed National Military Medical Center.
Entitlement and design is already underway, and construction is expected to begin in 2024.
“We are in the early stages of entitlement and will be working closely with the city and other stakeholders to ensure our development is in keeping with the zoning regulations and review process,” Shah said. “We will be submitting a sketch plan, preliminary plan and a site plan in accordance with city and county requirements.”
The price of the deal was not disclosed.
Keith Loria can be reached at Kloria@commercialobserver.com.