- What PSP Investments has opted to exercise an option to purchase the roughly 50% interest in District Wharf it does not own
- Why The 3.5m sq ft complex was briefly and quietly shopped last year
- What next A deal at the US$1.8bn valuation would be one of Washington’s priciest trades ever, according to Green Street’s Sales Comps Database
PSP Investments is taking full ownership of the massive District Wharf mixed-use campus in a deal that values the Washington trophy property at US$1.8bn ($2.6bn).
The Montréal-based pension manager has opted to exercise an option to purchase the roughly 50% interest held by its partners, Madison Marquette and Hoffman & Associates, formerly PN Hoffman. Eastdil Secured is brokering the transaction, which is expected to close in the next 60 days or so.
The agreement comes after the 3.5m sq ft complex was briefly and quietly shopped last year. A transaction at the deal’s valuation would be one of Washington’s most valuable property trades ever, according to Green Street’s Sales Comps Database.
The PSP partnership completed District Wharf, which stretches a mile along a channel of the Potomac River, in two phases in 2017 and 2022. The 27-acre property has 1m sq ft of Class-A office space, 1,490 residential units, 821 hotel rooms, 300,000 sq ft of retail space and a music venue called the Anthem.
There also are four public piers and 400 boat slips, underground parking for 2,500 cars and 17 acres of public parks. Overall, the property is more than 90% occupied.
The office component, spread across five buildings on Maine Avenue SW, commands some of Washington’s highest rents. A 2024 JLL report named that street as having the city’s priciest offices, with asking rents about 63% above the broader market. Office occupancy along Maine Avenue SW was 97.5% at the time.
Tenants of the office component represent a range of industries, including automotive, consulting, development, law and technology. They include American Psychiatric Association, Capital Guidance, Cornerstone Government Affairs, Daimler North America, Lumark Technologies and law firms Fish & Richardson and Williams & Connolly.
The residential space is split among three apartment buildings – Incanto, the Channel and the Tides – and three condominium properties with separately owned units.
The lodging component comprises four hotels that are branded under the Canopy by Hilton, Hyatt House, InterContinental and Pendry flags.
