Carlyle Group Grows DC Presence With HQ Expansion
The global private equity firm will occupy four stories of the 804,100-square-foot trophy office building. JLL negotiated the deal on behalf of the tenant, while Cushman & Wakefield represented the owner.
By Gail Kalinoski
1001 Pennsylvania Ave. N.W.
The Carlyle Group, a global alternative asset manager, is expanding its Washington, D.C., headquarters at 1001 Pennsylvania Ave. N.W. with an 11-year lease extension that adds 70,000 square feet to the firm’s current 130,000 square feet of space.
The plan calls for The Carlyle Group to close its Rosslyn, Va., satellite at 1300 Wilson Blvd. and consolidate its D.C. metro offices at the 14-story, 804,100-square-foot, Class A trophy building that sits halfway between the White House and the Capitol. The expansion will allow 650 Carlyle professionals to work across four floors of the building. It currently leases space on the second and third stories and will be adding space on the fourth and fifth floors. The building’s owner, TH Real Estate, has committed to extensive building renovations including a new lobby and fitness center.
JLL International Director Gregory Lubar and Steve Spartin, a JLL managing director, represented The Carlyle Group in the transaction, providing advisory services and lease negotiations. Cushman & Wakefield’s Bobby Schwartz, James Collins, Richard Tonner and Phil Dickinson represented TH Real Estate. JLL’s Project and Development Services team, led by Pete Lambis, will manage extensive internal renovations for The Carlyle Group.
“JLL has a longstanding history with The Carlyle Group, representing its facilities across the globe. We knew that by expanding at 1001 Pennsylvania, they will most certainly benefit from not only its premier location in the District, but also the commitment and investment of the building ownership,” Luber said in a prepared statement.
Building retail, office tenants
The building has about 763,000 square feet of office space and 41,000 square feet of ground-floor retail with tenants including Bank of America, Au Bon Pain, Cosi and Central Michel Richard Restaurant. Other office tenants include law firms Crowell & Moring, Clark Hill and Proskauer, which signed a 15-year lease in July 2014 for 48,216 square feet of space in the building and moved to the sixth floor.
TH Real Estate, the real estate arm of TIAA, acquired the building in January 2015 for $461 million from CalPERS, according to Yardi Matrix data. Hines continues to manage the building. Completed in 1987, the building takes up a full block on Pennsylvania Avenue between 10th and 11th streets and is located within blocks of three Metro stations.
The firm is not the only CRE company in the D.C. area to upgrade its office building. Earlier this year, Liberty Property Trust completed renovations at its 1100 17th St. N.W. office asset. OTJ Architects renovated the 146,472-square-foot, 12-story, 56-year-old building by adding a ground-floor amenity space, conference room, fitness center, bike storage and new lobby.
Image courtesy of JLL
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