SEC Secures Lease for New HQ

60 New York Ave. NE. Image courtesy of Douglas Development

The Securities and Exchange Commission has found a new headquarters in Washington, D.C. Through the U.S. General Services Administration, the SEC signed a 1.2 million-rentable-square-foot lease with the landlords, Douglas Development and Midtown Equities, and will occupy the entirety of 60 New York Ave. NE.

The 15-year lease also offers the SEC an option to extend the term for an additional 10 years. According to the GSA, the lease agreement also includes two firm-fixed price purchase options at the end of the initial term and the extension term. JLL’s Brian Sullivan represented the owners, while Savills’ Todd Valentine, David Lipson and Neil Levy along with GSA’s Kevin Terry represented the tenant.

Norman Jemal, managing principal at Douglas Development, told Commercial Property Executive that the company is planning to break ground on 60 New York Ave. NE in June 2022, with tenant completion slated for September 2025. Douglas Development will be leading the overall development process including the design, entitlements and construction of the project. The site also includes an opportunity for an additional development for more than 600,000 square feet of office space or 600 residential units or a combination of both, according to Douglas Development.

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Jemal also told CPE that the office will have Class A features like high ceilings and is expected to meet the Environmental Protection Agency’s Energy Star requirements. The building will also be LEED certified and will be within walking distance from the NoMa-Gallaudet University metro station. When completed, the new SEC headquarters will accommodate more than 4,500 agency employees.

Addressing the SEC’s needs

According to the GSA, the SEC lease at 60 New York Ave. NE is part of a years-long procurement process to meet the agency’s current and future needs in a cost-effective manner. With the new lease, the SEC will eventually relocate from its current headquarters that’s roughly a mile away at 100 F St. NE.

Douglas Development first got involved with 60 New York Ave. NE when the company purchased the land for the free-standing site 30 years ago, Jemal said in prepared remarks. Jemal also said in his prepared statement that this project is expected to be a catalyst for growth in the surrounding community north of New York Avenue in Washington, D.C.

Douglas Development is also working on its 1.5 million-square-foot mixed-use project at 1801 New York Ave. NE after acquiring the land in May 2017. More recently, the company secured a $400 million refinancing for its office building at 655 New York Ave. in May 2020.