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WASHINGTON, DC-ICG Properties, a local development and investment company, has recapitalized 75% of the equity in its DC portfolio, replacing a number of smaller equity players with Westbrook Partners, a spokesman for ICG tells GlobeSt.com. The value of the recapitalization is $100 million and covers a majority of the company's portfolio: the World Center Building at 1600 K St.; 2115 and 2121 Wisconsin Ave.; Penn Branch Center; and the recently acquired 910 16th St. As reported by GlobeSt.com ICG closed on a parcel of land and two buildings at the northwest corner of 16th and Eye streets at the end of last month for an undisclosed price.
"This is an exciting opportunity for us," says David Stern, who along with Darik Elwan and Stylianos Christofides, is an ICG Properties principal. He tells GlobeSt.com that the firm is hopeful Westbrook will joint venture with it on future deals, in which both sides would kick in additional equity.
Proceeds from the recapitalization, the terms of which ICG declined to discuss, have in part been slated to redevelop the portion of 16th and K streets that ICG owns now that long-pending deal is complete. Redevelopment options are somewhat limited as part of the street and buildings are considered a historic district.
Penn Branch Center, located at 3220 Pennsylvania Ave., is another prime redevelopment possibility, the spokesman also says.
Penn Branch Shopping Center is a mixed-use office and retail development in the District's Hillcrest neighborhood, an area that was recently identified as part of the city's Great Streets Initiative, a planning effort to revitalize six major corridors in the District. Retail rental rates in the 90,000-sf center are currently in the high $30s on a triple net basis, according to ICG. One tenant that recently renewed space in the Center is Wachovia, which agreed to occupy 3,916 sf for another seven years.
"We are an active developer and investor in the DC market and we are actively looking for new opportunities," the spokesman says. According to ICG, it is seeking new development and investment opportunities in the range of $25-$100 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
