commercial real estate

BREAKING: Microsoft Signs Lease for Major Presence in Rosslyn

By ARLnow.com

(Updated at 2:55 p.m.) Goodbye Ruby Tuesday, Microsoft is going to hang its name on 1300 Wilson Blvd in Rosslyn.

The tech giant announced today that it has signed a lease to establish a new sales hub at the Arlington office building, which formerly housed the chain restaurant on the ground floor. Last month the County Board voted to allow the former Ruby Tuesday space to be used for office purposes, in anticipation of “a sizeable office tenant.”

In a LinkedIn post, Microsoft said its new hub at 1300 Wilson Blvd, also known as Commonwealth Tower, would “become the new home of our regional Global Sales and Marketing Organization teams, and the Microsoft Sales Headquarters Office for the [D.C.] area”

The office is expected to open in mid-2022, after a construction project set to kick off this summer. The office brings Microsoft closer to a major customer: the Pentagon, which awarded the company a $10 billion cloud computing contract in 2019.

Microsoft will occupy more than 180,000 square feet of space in the 15-story, 360,000 square foot building, a source told the Washington Business Journal after the announcement.

It’s the latest D.C. area move for the Redmond, Washington-based company. In May, Microsoft announced that it would be creating 1,500 jobs at a new research and development hub at Reston Town Center.

The full LinkedIn post is below.

With Microsoft’s growing presence in the Washington, D.C. area, today we signed a new lease at 1300 Wilson Blvd in Arlington, VA. This will become the new home of our regional Global Sales and Marketing Organization teams, and the Microsoft Sales Headquarters Office for the DMV (Washington, D.C., Maryland, and Virginia) area. My U.S. Regulated Industries team, including our Microsoft Federal organization, will operate out of this new facility.

These new offices will feature a Microsoft Technology Center, state-of-the-art customer facilities, and innovative employee workspaces to support collaboration and innovation. It is built to help us engage with customers more personally, using our latest technologies to help them reimagine the digital transformation efforts of their organizations and agencies.

From the facility to the location itself, everything about this project was planned with our customers in mind, creating a proximity that enables us to support their evolving needs. Additionally, this move unites our teams in the mid-Atlantic region, fostering a communal atmosphere that can inspire us to do our absolute best work.

While we are all navigating the remote work environment, securing this space is an exciting step that maps to current needs around our growing presence, and ensures that when we transition back to the workplace, we can do so as seamlessly as possible. Construction on the site will begin this summer and we look forward to opening it to employees in mid-2022.

I am excited about the potential that this new DMV Sales Headquarters enables for our growth in the region, our ability to create more meaningful customer engagements, and the opportunity to provide modernized workplaces for our teams.

Photo via Microsoft

Former Ruby Tuesday Space in Rosslyn May Become Office

By ARLnow.com
1/3

What was once a watering hole and lunch spot for Rosslyn office workers may itself become an office.

The Arlington County Board last weekend approved a Site Plan Amendment for Commonwealth Tower, at 1300 Wilson Blvd, that will allow the building’s street-level restaurant space to instead be used as an office or a “retail-equivalent use,” like a doctor’s office.

The space — which includes a somewhat inconspicuous outdoor plaza — was last used by Ruby Tuesday, which closed two years ago.

“Since the Ruby Tuesday restaurant vacated the space in December 2018, the applicant has unsuccessfully marketed the space for restaurant or retail use,” a county staff report notes. “In addition to the adverse impacts of COVID-19 on retail viability, the subject space’s elevated frontage above street level and the plaza retaining wall pose challenges related to visibility and accessibility from the street.”

The building’s owner has a prospective office tenant that may be interested in the space, the report says.

“The applicant is proposing flexible use of the subject space and upgrades to the plaza and building entrance to increase attractiveness and viability for future tenants and better engage the street,” county staff wrote. “Currently, the applicant is in negotiations with a sizeable office tenant that would occupy space in Commonwealth Tower, including use of the subject space and plaza.”

The amendment, which was approved unanimously as part of the Board, consent agenda, will also allow the building’s entrance and plaza to be renovated, while making it easier to put up a rooftop sign.

Purple Lounge Site Now For Lease

By Scott Fields

After a myriad of controversies, Purple Lounge is set to vacate the property at 3111 Columbia Pike.

Property owner Jorge Escobar confirmed that the lease for the business runs out in January, at which point the Purple Lounge will leave the premises. A “for lease” sign currently hangs from the second story of the building.

Purple Lounge has repeatedly been in hot water with state alcohol regulators over the last few months. The business lost its liquor license on Oct. 9 after violating a settlement it reached with Virginia ABC on Sept. 16 to resume alcohol sales with a number of restrictions.

The October suspension came after Arlington County police officers recovered a gun and charged two people with narcotics offenses. Arlington County police notified Virginia ABC, which determined that Purple Lounge was not complying with two restrictions set by the settlement:

  • Restriction #4: The licensee agrees to have at least four (4) clearly identified Department of Criminal Justice Services (DCJS) certified security personnel on duty every day of operation between the hours of 9 p.m. and closing with at least one (1) guard assigned to patrol and monitor the parking lot, who will begin monitoring the parking lot no later than 8:30 p.m. and will remain on duty after closing until the parking lot has been cleared or until at least thirty (30) minutes after closing (whichever is longer).
  • Restriction #5: The licensee will not permit any loitering, loud music or drinking in the parking lot at any time.

The settlement came after the business had its liquor license suspended earlier in September after multiple shootings at the location. The September suspension immediately followed a double shooting on Aug. 30, and a triple shooting in June that resulted in one death.

The Purple Lounge had its live entertainment permit revoked by Arlington County last December amid local safety concerns. The business was also the site of violence the previous September when a man was shot outside the venue.

Purple Lounge’s nightlife predecessors at the same location have had similar controversies in the past. Pines of Italy restaurant previously occupied the building and had its live entertainment permit revoked in 2014, with a restaurant manager calling County Board members a vulgar term after the vote.

Morning Notes

By ARLnow.com

ANC and Addison Alternatives Announced — “Metro will offer free shuttle bus service and other travel alternatives during the spring closure of Addison Road and Arlington Cemetery stations on the Blue and Silver lines, the transit agency announced today. Addison Road and Arlington Cemetery will be closed from Saturday, Feb. 13 through Sunday, May 23, 2021, to allow for construction.” [WMATA]

Business Buys Ballroom Building, Before Bar by Beer Boss Brings Big Bucks — “Monument Realty has acquired the former Clarendon Ballroom as the owners of popular beer garden The Lot plan to open a temporary event venue inside the building on Arlington County’s Rosslyn-Ballston corridor. MR 3185 Wilson Retail LLC, an affiliate of the District-based commercial real estate developer, acquired the building at 3185 Wilson Blvd. Dec. 11 for about $6.7 million, according to Arlington County land records.” [Washington Business Journal]

COVID Concerns Cause County Crew Changes — “You can now add snow removal to the long list of things that have had to change because of COVID-19. ‘This year, what makes it different than many other years, is the threat of COVID and really the concern of just keeping the employees safe, keeping them distanced enough to where they can do their work but also go home safely,’ said Jeremy Hassan, the chief operating engineer for Arlington County’s Water, Sewer, and Streets Bureau.” [Fox 5]

Morning Notes

By ARLnow.com

State Dept. Staying in Rosslyn — “The Department of State will be staying put in an aging Rosslyn office building for another two decades after the General Services Administration ruled out options elsewhere in Northern Virginia for the agency’s space needs. The General Services Administration intends to seek a succeeding lease of 20 years with the owner of 1800 N. Kent St.” [Washington Business Journal]

Va. Square Development Underway — “Mill Creek Residential has begun construction of Modera Kirkwood, a 270-unit apartment community in Arlington, Va., in the heart of the Rosslyn-Ballston Corridor… at 3415 Washington Boulevard.” [Commercial Observer, Multi-Housing News]

Combine VRE and MARC? — “Creating a unified brand and fare policy for the Washington region’s commuter rail systems could help reduce travel times and improve economic development opportunities over the next few decades, according to a new report released Thursday… [The report says] plans should begin to physically connect the Virginia Railway Express (VRE) and Maryland Rail Commuter (MARC) lines and create a unified brand and fare policy to make commuters’ travel experience faster and easier.” [InsideNova]

Does Anything Look Different? — Updated at 10 a.m. — We made some upgrades to the website last night. Expect some additional minor updates over the next few weeks.

Morning Notes

By ARLnow.com

Major Metro Cuts Proposed — “With sharply reduced ridership and lacking fresh federal relief, Metro is proposing a new operating budget with a nearly $500 million deficit. Metro General Manager Paul Wiedefeld said Monday the proposed 2021 budget includes closing Metro rail at 9 p.m., ending weekend service, closing 19 stations and reducing the number of trains, which would result in longer wait times.” Among the stations that would close under the proposal are the Arlington Cemetery, Clarendon, East Falls Church and Virginia Square stations. [WTOP, Washington Post]

County Working on New Payment System — “Arlington officials continue to work on developing a one-stop online presence so the public can pay for a wide array of local-government services from their computers or smartphones. The initiative, being worked on by the treasurer’s office and Department of Technology Services, would go beyond the current CAPP [Customer Assessment and Payment Portal], which allows local residents to pay certain taxes, utility bills and parking tickets online.” [InsideNova]

Renovations for Mostly Vacant Building — “Wheelock Street Capital is seeking to renovate a long-vacant Arlington office building with the hope of attracting companies to the same corridor as Virginia Tech’s planned innovation campus and Amazon.com Inc.’s second headquarters… All of 3550 S. Clark St.’s office space thus far remains vacant. Small portions of the building’s retail space are leased to LA Fitness and child care center operator Bright Horizons.” [Washington Business Journal]

New Charitable Giving Portal — “New Looking for a way to add more charitable giving to the season of giving while supporting your neighbors in need? Arlington Community Foundation is launching its first ever Nonprofit Wish Catalog featuring grant ideas of 24 local nonprofits with wishes of up to $5,000 each this Giving Tuesday.” [Arlington Community Foundation]

Art Event Still On This Weekend — “The Arlington Artists Alliance presents its 18th annual Artful Weekend at Fort C.F. Smith Park. The show, featuring 30 top local Arlington-based artists and held in historic Hendry House at Fort C.F. Smith Park in Arlington, will be held December 4 to 6 this year. The show will feature paintings, ceramics, sculpture and cards, in addition to bins of unframed works.” [Event Calendar]

New Top Doc at VHC — “David Lee, MD, a member of the medical staff of Virginia Hospital Center for 30 years, has been tapped as the hospital’s senior vice president and chief medical officer.” [InsideNova]

It’s December — Today is Dec. 1. After today, there are only 30 days left in 2020.

Morning Notes

By Jay Westcott

Raytheon Remaining in Rosslyn — “Raytheon Technologies Corp. has reached a deal to extend its stay in a Rosslyn office building nearly three years before its current lease was slated to expire. The Waltham, Massachusetts, defense contractor has signed a long-term lease renewal with Monday Properties for its roughly 116,000 square feet at 1100 Wilson Blvd.” [Washington Business Journal]

Arlington Man Leaves ‘Bachelorette’ — “Our Arlington man Jason has departed the Bachelorette. Now all we’re left with is a man with the vaguely similar name of Chasen. Sad!” [Washingtonian]

Local Food Bank Expanding — “The Arlington Food Assistance Center (AFAC) is continuing its expansion efforts to ensure it has the ability to meet future needs of the community. Next up: Renovation of a newly acquired warehouse space at 2704 South Nelson St. next to the AFAC headquarters in the Four Mile Run corridor.” [InsideNova]

HQ2 to Help Fight Counterfeiting — “Amazon.com Inc.’s second headquarters appears to be the base for the company’s latest global effort to rein in faux goods sold on its e-commerce platform. The head of its so-called ‘Counterfeit Crimes Unit’ is based in Arlington, and the company was recently recruiting for the division at its Crystal City offices.” [Washington Business Journal]

TV Broadcast from Ballston — “Live, work and play in the Ballston area! FOX 5’s Kevin McCarthy visits Arlington County during our FOX 5 Fall Field Trip.” [Fox 5]

TitleMax Closes on Lee Highway, Future of Building in Question

By ARLnow.com
1/4

(Updated at 10:50 a.m. on 1/10/22) The two retail occupants of a squat commercial building at the intersection of Lee Highway and N. George Mason Drive have now both moved out.

TitleMax, which opened at 5265 Lee Highway in 2014, closed recently and has cleared out of the space, which was previously a 7-Eleven store. A sign on the door directs customers to a remaining TitleMax location at 6198-C Arlington Blvd, in Seven Corners.

No explanation for the closure was given.

Next door, long-time local business Sam Torrey Shoe Service closed in July after the owner decided to move to the Outer Banks of North Carolina.

TitleMax’s presence in the neighborhood drew some controversy early on.

Then-County Board candidate Christian Dorsey called the business a “predatory lender” and pushed for its lease to be terminated in the event that a proposed land swap between property owner Virginia Hospital Center and Arlington County happened. A land swap went through, but the Lee Highway property was not included.

Through a PR rep, Virginia Hospital Center said that it is still deciding what to do next with the property.

“TitleMax and Sam Tory have terminated their leases,” the rep told ARLnow. “The Hospital has made no decisions about the future of the site.”

Morning Notes

By ARLnow.com

Nonprofit Won’t Return to Arlington Office — “The American Diabetes Association isn’t planning a return to the Crystal City headquarters it left Alexandria for a few years back, not even when a Covid-19 vaccine is readily available and it’s safe to go back to the office again. The nonprofit is seeking to sublease all of its space at 2451 Crystal Drive, about 80,000 square feet.” [Washington Business Journal]

Voter Registration Open Until Midnight — “A judge on Wednesday granted a request from civil rights groups to extend Virginia’s voter registration deadline until Oct. 15 after the state’s online system crashed on the final day of the registration period, according to Virginia’s attorney general.” [Axios, Press Release]

Oh, Deer — The regional deer population has been increasing during the pandemic, which is making driving more dangerous this fall as deer potentially become “too comfortable” around roads. [NBC 4]

Park Rangers Patrolling for Rogue Mountain Bikers — “Park rangers have been patrolling the parks to keep the mountain bike riders off the natural trails. ‘We put up barriers in places where we can. We put up signs … in key areas we put up some things to block their access … but we’re focusing on education,’ Abugattas said.” [WTOP]

Voting Lines Should Move Quickly — “Arlington election officials are advising the public not to be dissuaded if lines for voting, either in advance of Nov. 3 or on Election Day itself, seem long. ‘You can expect to see a pretty long line, but that’s because of the spacing we’re trying to put between voters,’ county director of elections Gretchen Reinemeyer said.” Also, the Reinemeyer said the county is already fully staffed with volunteer poll workers. [InsideNova, InsideNova]

Certification for Sheriff’s Office — “The Arlington County Sheriff’s Office has met all applicable Prison Rape Elimination Act (PREA) standards following an audit that was conducted earlier this year.” [Arlington County]

Pentagon City Planning Meeting Tonight — “Participate in a virtual workshop about Arlington’s community planning process for Pentagon City! The first workshop will include small group discussions about the community’s vision for the Pentagon City Area.” [Arlington County]

County Considering Making Office-to-Apartment Conversions Easier

By ARLnow.com

Arlington County officials are considering new administrative guidance to streamline the process of converting office buildings into residential buildings.

Such conversions would remain subject to County Board approval, but a new set of guidelines being considered by county staff would make the review and recommendation process easier.

In a presentation, expected to be given to the county’s Long Range Planning Committee at its meeting tonight, officials will say that trends both local and national will lead to a wave of office building conversions. Underlying that is the pandemic and the shift to working from home, potentially leading to less demand for office space.

The trends, however, started before the pandemic, with an “observed reduction in office demand — nationally, regionally and locally — over the past decade resulting limited economic feasibility for speculative multi-tenant office buildings.”

Recent office-to-residential conversions in Arlington include the WeLive/WeWork building in Crystal City. Future projects like it need a better-defined path from proposal to County Board consideration, county staff says.

“Neighboring jurisdictions are actively addressing issues around use flexibility,” the presentation notes. “Alexandria and Fairfax County have adopted policies related to this issue and have approved projects implementing them whereas Arlington County has approved projects with no guiding policy to date.”

The guidance will not change existing County Board policies, the presentation asserts, but will help staff when reviewing office conversion proposals.

“In advance of evaluating the appropriateness of new office conversion requests, staff developed this administrative guidance for use during staff review, community discussion and [County Manager] recommendation to the [County Board] on the proposed conversion,” the presentation says. “This guidance is not [County Board] policy, and does not change existing [County Board] policy or alter existing land use processes.”

The law firm McGuireWoods is telling its clients, however, that the changes will “increase flexibility and support for repurposing existing and approved office buildings.”

“The new administrative guidance is expected to give developers and property owners much-needed flexibility to consider residential, live-work and other options that, in many cases, could be beyond what existing planning guidance permits,” the firm said on its website. “Outreach is currently underway with business community stakeholders and decision makers and will continue in the upcoming weeks. The administrative guidance will likely be in place by the end of 2020.”

Rosslyn Office Owner Buys Another Shirlington Property

By ARLnow.com

Monday Properties, which is best known locally for being the predominant owner of office buildings in Rosslyn, is making its second recent purchase in the Shirlington area.

Monday, in a joint venture with London-based neo capital, is acquiring Shirlington Tower at 2900 S. Quincy Street. The nearly quarter-million square foot office building is mostly filled, with tenants like the U.S. Navy and the National Alcohol Beverage Control Association.

It’s the second Shirlington office tower the company has acquired in as many years, after the purchase of 2800 S. Shirlington Road, a gleaming tower adjacent to the highway that contains a number of medical offices, among other tenants. Office properties outside of Metro corridors had previously fallen out of favor in the local commercial real estate world, but this transaction suggests that perhaps something is different about Shirlington.

In a press release, Monday touts Shirlington’s live-work-play amenities — including retail stores, restaurants, the Shirlington library, apartment buildings, theaters and a grocery store — plus its proximity to Amazon’s future HQ2, just up I-395 in Pentagon City.

“Shirlington Tower marks the second acquisition Monday Properties made in the Shirlington submarket within the last two years, and we are pleased to have partnered with neo capital,” Tim Helmig, Managing Partner at Monday Properties, said in a press release. “We remain bullish on forward-looking regional market fundamentals and intend to continue our momentum as active buyers in the marketplace.”

More from the company’s press release, below.

Monday Properties and neo capital today announced their joint venture acquisition of Shirlington Tower, a 233,446 square-foot office building located in the heart of Shirlington… in Arlington, Virginia. Shirlington Tower is 97% leased to an array of notable tenants including the U.S. Navy, HNTB Corporation, The National Alcohol Beverage Control Association, and Halfaker & Associates. Onsite amenities include a 12,000 square-foot fitness center, outdoor courtyard, and a variety of retail stores and restaurants.

“The DC region has again demonstrated its resiliency to economic downturns. Despite the turbulent market conditions brought on by COVID-19, the area remains attractive to businesses, investors, and residents,” said Wes Machowsky, Senior Vice President of Acquisitions and Capital Transactions at Monday Properties. “The acquisition of Shirlington Tower is the result of a collaborative effort by all parties involved, and we are well-positioned to continue to strategically grow our portfolio in spite of the pandemic-related headwinds confronting the capital markets.”

Shirlington Tower is located less than two miles from both National Landing — home to the future Amazon HQ2 and Virginia Tech’s Innovation Campus — and the Rosslyn-Ballston Corridor. Shirlington Tower is connected to Shirlington [Village], with extensive multifamily and retail product, and experiential amenities that include an AMC movie theatre, Harris Teeter, and [the Shirlington Branch] Library, along with restaurants, shops, and entertainment options.

A representative from neo capital said “Our acquisition of Shirlington Tower is an important part of our strategic portfolio growth in the United States. This is exactly the type of asset and market neo capital is looking to invest in — exceptional job growth, great regional connectivity, and best-in-class tenants. We see a lot of value in the DC region and will look to invest further here and in other strong performing U.S. cities.”

“Shirlington Tower marks the second acquisition Monday Properties made in the Shirlington submarket within the last two years, and we are pleased to have partnered with neo capital,” said Tim Helmig, Managing Partner at Monday Properties. “We remain bullish on forward-looking regional market fundamentals and intend to continue our momentum as active buyers in the marketplace.”

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