Bain Capital, Evergreen Acquire D.C. Medical Office at Discount

A newly renovated medical outpatient facility in Washington, D.C.’s West End has traded hands for a bargain, adding to a trend that’s becoming the standard for office real estate in the District.

A joint venture between Bain Capital Real Estate and Evergreen Medical Properties acquired the eight-story, 122,000-square-foot property at 2440 M Street NW, northwest of George Washington University’s campus, for $45.5 million in the JV’s first deal in the District. The seller, Chicago-based investment firm Harrison Street, had acquired the property for $61.6 million in 2013, records show.

“Our expansion into the D.C. market represents a natural extension of our thematic investing approach and partnership with Evergreen, which seeks to identify and add value to high-quality medical outpatient facilities,” Joe Marconi, partner at Bain Capital, said in a statement.

A representative for Harrison Street did not immediately respond to a request for comment. 

The property, which was renovated in 2024, is currently 83 percent leased to a blend of medical boutiques and private practices, such as DC Pearls Dental Boutique, Dr. Praful Ramineni at District Plastic Surgery and Columbia Fertility Associates.

Thorofare Capital had provided Harrison Street a roughly $126 million refinancing package in late 2023 for an eight-property medical portfolio mostly within the District, which included 2440 M Street. Though the status of that debt before the sale to Bain and Evergreen in early January was unclear. 

Although Harrison Street took a loss in its sale of the 2440 M Street, it’s still not quite as painful as J.P. Morgan Investment Management’s $29.4 million year-end sale of the roughly 179,000-square-foot building at 1501 M Street NW to an affiliate of Real Capital Solutions. The seller acquired that building in 2010 for $78.6 million, and its most recent assessed value was $59.7 million. 

Nick Trombola can be reached at ntrombola@commecialobserver.com.