A Significant Deal in the Making

PSP Investments, a Canadian pension fund, is reportedly in the process of acquiring The Wharf from current owners Hoffman & Associates and Madison Marquette. This transaction could ultimately value the iconic district at approximately $1.8 billion, as indicated by sources from Green Street’s Real Estate Alerts and Bisnow.

Refinancing Efforts Underway

In conjunction with the acquisition, PSP is also pursuing a refinancing package estimated at around $1.2 billion. This financing is crucial as it concerns debt associated with The Wharf, which is set to mature in the upcoming spring. It remains unclear how negotiations are progressing, as representatives from the involved parties have not yet provided comments on the situation.

The Wharf Development Timeline

The development’s foundation was laid with groundbreaking activities starting in mid-2014, during which PSP Investments took on a minority ownership role, contributing a significant $220 million equity investment at that time. The first phase reached completion in 2017, offering an array of commercial, residential, and recreational facilities.

Financial Milestones

• June 2019: A refinancing deal led by Wells Fargo valued at $800 million for the first phase.
• Subsequent months: An $847 million construction loan facilitated by Goldman Sachs marked the second phase, touted as the largest private construction loan in D.C. at that point.

Brokerage and Law Firm Interest

Eastdil Secured, known for facilitating both major financing packages in 2019, is allegedly involved in brokering the ongoing buyout deal and PSP’s refinancing efforts. The Wharf has become a popular location for law firms seeking expansive riverfront office spaces, with notable Examples including:

• Williams & Connolly: Expanded with a lease of nearly 26,000 square feet, totaling over 313,000 square feet at The Wharf.
• Kelley Drye & Warren: Secured a 65,000-square-foot lease in late 2023 within the same district.