Office Properties Income Trust Commences 427,000 Square Foot Mixed-Use Redevelopment of 20 Mass in Washington, D.C.
NEWTON, Mass.--(BUSINESS WIRE)--Jul 22, 2021--
Office Properties Income Trust (Nasdaq: OPI) today announced commencement of a redevelopment project at 20 Massachusetts Avenue NW (“20 Mass”) in Washington, D.C. The project will redevelop 20 Mass from a seven-story, 340,119 square foot Class B office building to a 10-story, 427,000 square foot mixed-used property and is expected to be completed in early 2023.
Located in D.C.’s prestigious Capitol Hill neighborhood, 20 Mass is adjacent to Union Station, which is a major regional transit hub and is a short walk to the United States Capitol and Supreme Court. It is also near popular neighborhoods such as Chinatown, Penn Quarter and the Mount Vernon Triangle, as well as the Capital One Arena, where the Washington Wizards and Washington Capitals play.
When complete, 20 Mass will include 184,000 square feet of Class A office space on the top four floors with 45,000 square foot floor plates, 14,000 square feet of retail space, a 271-key Royal Sonesta Hotel, a fitness club and penthouse amenities including 360-degree views of the city, vegetated green roof and a conference center. 20 Mass will feature touchless systems and have an emphasis on WELL and LEED certifications.
Christopher Bilotto, President and Chief Operating Officer of OPI made the following statement:
“Upon completion, 20 Mass will be a state-of-the-art mixed-use destination with premier office space. We believe the property’s distinctive office, hotel, retail and amenity spaces will attract an array of tenants and visitors to its core Capitol Hill location. We anticipate delivery in early 2023 and total project costs of approximately $200 million with returns of 8-10%, making this a highly accretive use of capital for OPI.”
“This project is a great example of how The RMR Group’s deep bench and expertise benefit OPI. With more than 600 commercial real estate professionals throughout the U.S. and a diversity of direct real estate strategies, OPI will be able to leverage RMR’s institutional knowledge for this project from start to finish to create value for OPI and its shareholders.”
The 20 Mass redevelopment is designed by Leo A. Daily Architects. For more information visit 20Mass.com.
Office Properties Income Trust is a real estate investment trust, or REIT, focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever OPI uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, OPI is making forward-looking statements. These forward-looking statements are based upon OPI’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by OPI’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI’s control. For example:
- Mr. Bilotto states that OPI believes that 20 Mass’s distinctive office, hotel, retail and amenity spaces will attract an array of tenants and visitors. However, once the redevelopment is completed, 20 Mass may not attract tenants and visitors at the same levels OPI expects.
- Mr. Bilotto states that OPI anticipates delivery of 20 Mass in early 2023 and that project costs for 20 Mass Ave will be approximately $200 million with returns of 8-10%. However, for various reasons, the redevelopment may cost more and may take longer to complete than OPI currently expects, and OPI may incur increased amounts in the future for the redevelopment. Further, OPI may not realize the returns on the redevelopment it currently expects.
- Mr. Bilotto states that this project is a great example of how RMR’s deep bench and expertise benefit OPI and that OPI will be able to leverage RMR’s institutional knowledge for this project. However, the benefits OPI believes it will realize from its relationship with RMR may not materialize and may not create value for OPI and/or its shareholders.
The information contained in OPI’s filings with the SEC, including under “Risk Factors” in OPI’s periodic reports, or incorporated therein, identifies other important factors that could cause OPI’s actual results to differ materially from those stated in or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com:https://www.businesswire.com/news/home/20210722005145/en/
CONTACT: Olivia Snyder, Manager, Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA DISTRICT OF COLUMBIA MASSACHUSETTS
INDUSTRY KEYWORD: RETAIL OTHER CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY REIT OFFICE PRODUCTS
SOURCE: Office Properties Income Trust
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PUB: 07/22/2021 08:00 AM/DISC: 07/22/2021 08:02 AM