Office Properties Income Trust Unveils DC Mixed-Use Makeover – What is a Ground Lease?

Development, Mid-Atlantic, Mixed Use, News, Washington D.C., CBRE, DPR Construction, JLL, Leo A Daly, Office Properties Income Trust, The RMR Group

The reimagined 20 Mass is LEED Gold and WELL certified. Image by Ron Blunt, courtesy of The RMR Group

Office Properties Income Trust has unveiled the redeveloped 20 Mass in Washington, D.C. Formerly a government office building, the mixed-use tower now features a combination of office, retail and amenity spaces, as well as a hotel.

Designed by Leo A. Daly and developed by DPR Construction, the $200 million project resulted in a LEED Gold and WELL certified asset. The RMR Group manages the property.

A $200 million redevelopment

The 427,191-square-foot property stands 10 stories high at 20 Massachusetts Ave. NW. It was originally completed in 1974, according to CommercialEdge data, as a seven-story, 340,000-square-foot office building housing the U.S. Army Corps of Engineers.

The revamped 20 Mass now comprises 183,000 square feet of office space across floors seven through 10, 13,800 square feet of ground-floor retail, 14,500 square feet of penthouse amenity space and a 274-key luxury hotel. Amenities include conference centers with private decks, meeting rooms, EV charging stations and a bike storage room, as well as a fitness center and yoga studio.

The building’s office component features 46,000-square-foot floorplates and floor-to-ceiling windows. CBRE is the office leasing broker for the asset while JLL is the retail leasing broker.

The property is 54 percent leased to Sonesta International Hotels Corp., which opened The Royal Sonesta Washington, D.C., Capitol Hill at the building’s floors two through six. The luxury hotel includes a Bistro Du Jour on the main level, together with a bar, lounge and outdoor café.

20 Mass won NAIOP DC|MD Best Renovation award for programming, design and construction creativity in the Washington, D.C. and Maryland areas. The redevelopment included the implementation of a glass curtain wall façade and 10-story atrium, alongside a green roof and storm water management system.

Located in the Capitol Hill neighborhood, the property is adjacent to Union Station and close to the United States Capitol and the Supreme Court of the U.S. Din ing, entertainment and retail options are available nearby.

Office conversions, a rising trend

This year, office conversions are estimated to more than double the recent annual average, according to a CBRE report, with approximately 100 such projects scheduled for delivery. Office-to-mixed use redevelopments account for 18 percent of the total.

The Washington, D.C., office market has some 5.1 million square feet slated for conversion in 2023, representing 1.4 percent of its inventory. The metro also had nearly 4.3 million square feet of office space underway as of August, a CommercialEdge report reveals, while the vacancy rate reached 15.3 percent, up 120 basis points year-over-year.

A Tishman Speyer property located near The White House recently landed a 37,000-square-foot lease. A nonprofit financial support company will occupy the entire eighth floor of the 12-story building beginning in November 2024.

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A former government building now includes office, retail and hospitality spaces.
The post Office Properties Income Trust Unveils DC Mixed-Use Makeover appeared first on Commercial Property Executive. Read More Commercial Property Executive

In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land. Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings.