Penzance is slowly building up occupancy at one of Washington’s most iconic complexes: The Watergate.
CVS has signed a long-term lease to expand its presence from its current 8,000 SF space to 13,000 SF at the former Safeway space. The deal will make CVS the largest tenant in the 65,000 SF retail plaza.
Penzance has retained Bill Miller and Alex Walker of Miller Walker Retail Real Estate to market the current 8,000 SF CVS space along with the balance of the retail plaza.
The company acquired it at the end of last year from the mezz lender, amidst news its anchor retail tenant, Safeway, would be leaving.
CVS is a clear example of tenants’ initial hesitancy about the Watergate; it inked a shorter-term deal when Penzance first acquired the Watergate.
“We worked to convince them to stay longer,” Pacinelli says. There have been other renewals of retail tenants as well, he adds, and “we are working on more right now.” Currently there is about 100,000 SF of vacant office space at the Watergate and 20,000 SF of available retail space.