D.C.’s Biggest Office Sale

No major U.S. region’s office market has suffered the most in COVID-19’s wake than Washington, D.C.’s. Investors were bound to seize on the distress, which is what appears to have happened in the city’s largest office sale so far this year. Also for today: JPMorgan Chase has a new No. 2 in its real estate department.

And just a reminder that you can keep up with all the major leasing, financing and sales deals with Commercial Observer’s new Deals of the Week newsletter.

— Tom Acitelli, Deputy Editor

D.C.’s Biggest Office Sale of 2024 So Far: PRP Closes On Market Square for $323M

PRP Real Estate Investment has acquired the Market Square office complex in the heart of Washington, D.C., for $323 million, or roughly the loan amount on the property, Commercial Observer has learned. The two-building property on Pennsylvania Avenue, between the White House and Capitol Hill, is home to the government affairs offices of more than 30 Fortune 500 companies, including Visa, Pepsi, Cigna, Prudential and UnitedHealthcare. “That’s a tenant base that’s immune from a downturn. They have to be downtown, they have to be near the White House and the Capitol,” said Paul Dougherty, president and CEO of PRP. “If this was about a building on K Street, it would be a different deal.” The office portion of the 690,000-square-foot property at 701 and 801 Pennsylvania Avenue NW was 84 percent leased at the time of the sale, with a seven-year weighted average lease term, per Dougherty.

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JPMorgan Chase Appoints Michelle Herrick as Deputy Head of CRE

JPMorgan Chase officially has a new deputy in town. Michelle Herrick was just named deputy head of commercial real estate within the bank’s commercial banking business, Commercial Observer has learned. In her newly expanded role, Herrick will work alongside Al Brooks, JPMorgan’s head of commercial real estate. “I’m thrilled to take on this role to help manage our world-class CRE franchise,” Herrick said in prepared remarks. “It’s an honor to lead this exceptional team, and I look forward to partnering with Al, the business and our clients as we continue building upon our success.” The promotion comes in Herrick’s seventh year at JPMorgan. She joined the firm in 2017 as market manager for the real estate banking central region, delivering strong results for the bank throughout the Midwest, Mountain and Southeast markets during her four-year tenure in the role. In 2021, she was named head of real estate banking.

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