J.P. Morgan Exits Carr Properties Ownership, Takes Over Three DMV Offices
As J.P. Morgan exits its 36% stake in Carr, fellow Carr investor Alony Hetz doubles down and raises its stake from 48% to 79%
By Nick Trombola July 18, 2025 2:40 pm
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J.P. Morgan Asset Management has completed its ownership exit of Washington, D.C.-based developer Carr Properties after taking over three properties formerly owned by Carr in the DMV as part of the deal.
J.P. Morgan closed out its roughly 36 percent stake in Carr in exchange for the three properties, two in the District and one in Northern Virginia: the 2021-built, 226,000-square-foot 1255 Union Street NE, dubbed Signal House; the 2002-built,190,000-square-foot 1875 K Street NW; and the 2009-built, 113,786-square-foot 1701 Duke Street in Old Town Alexandria, Va.
Carr said it will continue to operate the buildings, valued at $82 million, $131.7 million and $39 million, respectively.
The developer and J.P. Morgan entered into a nonbinding memorandum of understanding for the ownership transfer back in May, though it wasn’t clear at the time which properties J.P. Morgan would take. J.P. Morgan’s reasons for bowing out of the Carr ownership were still not clear, and a spokesperson for the company declined to comment.
Yet as one investor steps back, another steps forward. Alony Hetz, an Israeli real estate investment holding company, has simultaneously made a $100 million equity investment into Carr, bumping its ownership stake in the developer up from 48 percent to 79 percent. The funds will go toward “expansion of [Carr’s] business, with an emphasis on new ventures,” according to an investor filing Alony Hetz made earlier this year.
“Through our investment strategy — focused on repurposing existing office buildings into trophy-quality office and redeveloping obsolete office assets into new, high-end multifamily communities or new trophy quality office buildings — we are entering an exciting new chapter for Carr,” Oliver Carr III, Carr CEO, said in a statement. “[Alony Hetz’s] investment enables us to accelerate our growth strategy, advance new development and acquisition opportunities and continue delivering high-quality, thoughtful spaces that meet the evolving needs of our customers and communities.”
As it prepared for J.P. Morgan’s exit, Carr also planned to sell two more undisclosed assets for between $100 million and $110 million, per Alony Hetz’s investor filing. Indeed, the developer in June sold 901 K Street NW, a roughly 219,000-square-foot office in D.C.’s East End, to Shorenstein for $84.3 million; and in May sold a 228,000-square-foot office, at 4500 East-West Highway in Bethesda, Md., to Peel Properties for $35 million.
Carr now owns only two trophy properties within the District: the 123,000-square-foot 1700 New York, and the 869,000-square-foot Midtown Center, its sprawling mixed-use plaza that serves as Fannie Mae’s D.C. headquarters.
Commercial Observer separately sat down with two of Carr’s executives earlier this year — Chief Investment Officer Francis Lynch and Senior Vice President of Operations Linda Cogburn — to discuss Carr’s investment strategy, D.C.’s office market, and Cogburn’s career progression at Carr.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
