DC Completes Early Renewal for 544K SF at Waterfront Station
Extension of DGS lease runs from late 2024 through 2035
By Chava Gourarie April 2, 2024 7:00 am
reprints
The Washington, D.C., Department of General Services (DGS) has completed an early restructuring at Waterfront Station in Southwest D.C., signing a new 11-year agreement for 543,798 square feet across two buildings.
Various D.C. agencies occupy the entirety of the office space at the Waterfront Station complex, where they’ve been since 2010 when the development opened. The D.C. Council extended the existing contracts for each building by five years, through 2035 with a five-year renewal option, in two separate deals, according to D.C. Council materials.
The new terms, which amend a previous 2021 agreement, begin in November 2024.
At 1101 4th Street Southwest, the Office of the Chief Financial Officer (OCFO) will continue to occupy 274,122 square feet at a cost of $16.8 million through 2035, which works out to $61.33 per square foot, and includes taxes, tenant improvements and operating costs, per the Council documents. The deal also offers OCFO an additional $1.6 million in tenant improvement allowance, made necessary by the increase in construction and labor costs since 2021.
The 338,430-square-foot property across the street, at 1100 4th Street SW, will continue to house D.C.’s Department of Buildings, Department of Transportation and some OCFO spillover, among other municipal agencies. The deal extends the existing 269,763-square-foot lease through 2035 at a cost of $16.5 million, or $61.51 per square foot. That’s in exchange for an additional $13.5 million allowance for tenant improvements.
DGS, which oversees all facilities and property management for the District, was represented by Savills, while CBRE represented the landlord, Affinius Capital, which acquired the property in 2011, shortly after it was completed.
Back in 2010, DGS had taken 100 percent of the office space in the first phase of Waterfront Station. The move was part of the city’s efforts to locate government offices in overlooked parts of the city to help spur economic development.
The second phase of the development, previously known as Waterfront Station II, was awarded to a joint venture led by Hoffman & Associates. Completed in 2023, The Westerly includes 449 apartments and retail space.
Savills, CBRE, Affinius Capital and the D.C. Office of the Mayor did not immediately respond to requests for comment.
Chava Gourarie can be reached at cgourarie@commercialobserver.com,
