Government Agencies Renew for Combined 57K SF at D.C. Tower

President Donald Trump is attempting to push the federal government out of Washington, D.C., but a new pair of agency lease renewals indicate that aspects of the government are there to stay.

The General Services Administration (GSA), which manages the federal government’s real estate portfolio, has inked two renewals for a combined 57,470 square feet at 1800 M Street NW, a 10-story office building in the heart of Downtown D.C. A group of lenders led by Goldman Sachs owns the building, while Columbia Property Trust, which previously controlled it before defaulting on $302 million in debt late last year, manages the property.

The Civilian Board of Contract Appeals, an independent GSA tribunal, will retain its 48,598-square-foot space at the property, while the Medicaid and CHIP Payment and Access Commission will retain its 8,872-square-foot space. Both agencies, which have been tenants at the office tower for over a decade, will remain there through at least 2035.  

Columbia Property Trust also secured a new, 12-year, 23,871-square-foot lease with a national law firm, though the landlord did not disclose the name of the tenant, and a spokesperson for Columbia declined to comment further. The law firm plans to move into its new space in the spring. 

Columbia was represented in-house by Ted Koltis and Maria Blake, along with Cushman & Wakefield’s Mark Wooters, James Collins, Gina Damond, Scott Killie, Stephanie Heffernan and Darian LeBlanc. Public Properties’ Brad Seifert and Hunter Powell represented the GSA. 

“This recent leasing velocity demonstrates the enduring appeal of well-managed, centrally located, newly renovated and highly amenitized environments in the country’s gateway markets, and is a great indicator of the resilience of the Washington, D.C., office market,” Koltis, Columbia’s executive vice president and head of real estate, said in a statement. 

The real estate investment trust claims to have inked more than 159,000 square feet of lease deals over the past 12 months at the M Street tower, which is roughly 90 percent leased. That includes a 15-year, 9,247-square-foot lease with Balos Restaurant Group for a new upscale restaurant concept at 1800 M. 

Despite the occupancy successes lately, Columbia was still forced to relinquish control of the building late last year. A partnership between the REIT and Allianz Real Estate paid $421 million for the office in late 2017, taking out a $287 million financing package from Goldman Sachs, Deutsche Bank and Citi Real Estate Funding in 2021. The debt had grown to $302 million by the end of last year, and a foreclosure notice for 1800 M was issued in November. The lenders took over the building shortly after. 

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