The University closed a deal with two real estate companies to revamp the properties at 2000 Penn, according to a University release Wednesday.
After months of negotiations, officials entered a long-term ground lease with Westbrook Partners, a real estate investment management company, and MRP Realty, a D.C.-based real estate company, according to the release. The lease allows the companies to develop the complex while reducing operating risks and generating real estate revenue for the University.
The complex will retain its office and retail tenants under the new agreement, the release states.
The University also profits from owning The Avenue – a retail and apartment complex on I Street – and plans to transform 2100 Pennsylvania Ave. and Rice Hall into a commercial and retail space over the next few years.
“The University is excited to have entered into an agreement with a partner that is committed to repositioning the building and reinvigorating the retail experience at this space,” Alicia Knight, the senior associate vice president for operations, said in the release.
Officials hired a commercial real estate services firm in November to market the properties at 2000 Penn and advise the University as it sought a candidate for a long-term lease.
At least nine shops in 2000 Penn have closed in the past 11 years, and store managers said low foot traffic in the building and high rent contribute to the turnover.