Donohoe and Carr Companies Acquire Select-Service Hotel and Residential Development Site in Chevy Chase
January 6, 2021
Joint ventures between The Donohoe Companies, Inc. (“Donohoe”) and Carr Companies (“Carr”) announced the $74MM combined acquisition of 5500 Wisconsin Avenue, a residential development site comprised of 44,688 square feet of ground-floor retail, and 5520 Wisconsin Avenue comprised of the 226-key Courtyard by Marriott Bethesda Chevy Chase in Chevy Chase, Maryland.
“Carr is excited for the opportunity to acquire what we believe will be a transformative project for the Chevy Chase market. Carr and Donohoe share a vision of long-term value creation in the communities in which we develop, and we are partnering here once again to bring that vision to fruition on Wisconsin Avenue,” said Matt Buhts, CFO of Carr. “5500 Wisconsin offers the ability to create a truly outstanding mixed-use center, with hotel, retail, and residential components working in harmony. Chevy Chase is one of the best submarkets in the region, and we look to bring a long-awaited facelift to the site with a focus on community-serving offerings. If the trials of the past year have taught us anything, it is the importance of collaboration and community.”
The property is located on Wisconsin Avenue, a major thoroughfare spanning the District of Columbia through Chevy Chase and Bethesda, Maryland, two blocks north of the Friendship Heights Metro station and in close proximity to the 5.2 million square feet of Class A office space within Bethesda/Chevy Chase. The location enjoys immediate access to the Collection at Chevy Chase upscale retailers and an adjacent beautifully landscaped public park.
The hotel component was acquired in partnership with Argosy Real Estate Partners, and Donohoe Hospitality Services will implement operational and performance improvements as the new manager of the Courtyard by Marriott Bethesda Chevy Chase. Operations of the hotel will remain uninterrupted by the development of the adjacent trophy residential mixed-use development. Through a joint venture with SpringHarbor Financial Group and Kruger Real Estate, Carr and Donohoe are planning a trophy residential project on the southern portion of the property that will revitalize the entire block and provide a complementary mix of uses with the adjacent hotel. Donohoe Construction is scheduled to break ground in late 2022.
“Donohoe Hospitality Services is pleased to add the Courtyard by Marriott Bethesda Chevy Chase to its growing portfolio,” said Thomas Penny, President of Donohoe Hospitality. “As we prepare to get COVID-19 in our rearview mirror, we look forward to building on the results of the existing team to optimize revenue further and enhance margins.”
The 44,688 square feet of retail was built in 1970 and offers approximately 350 feet of frontage on Wisconsin Avenue. The 226-key hotel was built in 1970 as a Holiday Inn and was repositioned via a major renovation in 2009 as a Courtyard by Marriott. The hotel guest rooms were also renovated in April 2017.