CP Group Acquires 709K-SF Democracy Center in Bethesda, Maryland

National office landlord further expands national presence with re-entry into DMV market

CP Group, a prominent owner-operator of office properties throughout the Sunbelt, has acquired Democracy Center — the three-building, 709,313-square-foot office campus in Bethesda, Maryland – in a joint venture with DRA Advisors. The acquisition marks CP Group’s first in the greater Washington, D.C. market since it opened a regional office in Washington DC last year and its third joint venture with DRA in the past year.

“We plan to revitalize Democracy Center through our amenitization and tenant experience programs. Today’s workforce demands flexibility and on-site conveniences, which we plan to deliver to the campus,” said Tommy Spinosa, Senior Vice President at CP Group and managing the DC metro office. “State-of-the-art amenities, activated greenspaces, and renovated common areas are some examples of what we’ll deliver to Democracy Center.”

Designed by Skidmore Owings and Merrill and developed by Boston Properties, Democracy Center consists of two nine-story buildings and one 15-story building. Amenities include a Starbucks, outdoor plazas; a cafeteria with outdoor seating; a fitness center; a sport court; and on-site daycare. The campus is immediately adjacent to a new HOV off-ramp with direct access to I-270 and I-495.

CP Group plans to implement a transformative $12+ million capital program that will include new indoor and outdoor amenities – including a conference center and tenant lounge – and upgrades to the lobbies, common area corridors, and restrooms. The firm will also develop a full floor of CP Group managed spec suites as part of their flexible workplace program, worCPlaces. In addition to the capital program, CP Group will prioritize sustainability and health and wellness initiatives with a focus on energy and water efficiency, waste, recycling, and tenant health and wellbeing, overseen by the firm’s Director of ESG and Tenant Experience Manager.

“Class A office within the I-270 corridor is experiencing a dynamic shift as life science users are increasingly absorbing the traditional office stock,” said Brett Reese, who oversees acquisitions and investments for CP Group. “Democracy Center is acutely positioned to attract new tenancy. Our basis in the deal will allow us to transform the asset back to its historic prominence in the market and offer competitive rates to our tenants.”

Democracy Center is strategically located in the I-270 Corridor, one of the nation’s premier life sciences hubs, and offers prime vehicular access to all major interstates.

CP Group Remains Active in 2022

CP Group’s re-entry into the DC Metro market with Democracy Center marks its fifth overall acquisition in 2022, totaling over 3 million square feet and over $820 million in equity invested, including Miami Tower in Miami, Florida; Las Olas Square in Fort Lauderdale, Florida; and Bank of America Plaza and Buckhead Center in Atlanta, Georgia.

About CP Group

Active in the commercial real estate business for over 35 years, CP Group has established a reputation as a premier owner, operator, and developer of office and mixed-use projects throughout the Sunbelt. Since 1986, CP Group has acquired and managed over 165 properties, totaling over 56 million square feet, valued at nearly $8 billion. It is currently Florida’s largest and Atlanta’s second-largest office landlord and ranks 25th largest in the United States. Headquartered in Boca Raton, Florida, the firm has a corporate office in Atlanta and regional offices in Denver, Miami, Jacksonville, Dallas, and Washington DC. To learn more about the company, visit CPGcre.com.

About DRA Advisors

DRA Advisors LLC is a New York-based registered investment advisor with approximately 95 employees specializing in real estate investment management services for institutional and private investors, including pension funds, university endowments, sovereign wealth funds, foundations, and insurance companies. Since DRA was founded in 1986, the firm has opened additional offices in Miami and San Francisco while acquiring over $36.5 billion of real estate. The acquisitions include 84 million square feet of industrial, 64 million square feet of office, 83 million square feet of retail and 82,000 multifamily units. As of June 30, 2022, DRA has $12.3 billion in gross assets under management. http://draadvisors.com

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