Fannie Mae (OTCMKTS: FNMA) has signed a long-term lease at its Washington, DC-based headquarters, albeit for a smaller space.
The government-sponsored enterprise announced the transaction in a statement that said, “We are pleased to have come to a new lease agreement with Carr Properties to maintain our presence at Midtown Center in Washington, DC. Our reduced office footprint will allow us to continue to best meet the needs of our employees and business operations while being fiscally responsible. We thank Carr Properties for their collaboration as we worked toward a new agreement.”
While Fannie Mae did not go into details about the “reduced office footprint,” Bisnow.com reported the lease is for 340,000 square feet, which is approximately half of its current space. Fannie Mae had been at its location since 2018 as the property’s anchor tenant, encompassing 869,000 square feet of office space. However, in January it put 720,000 square feet of its pace on the sublease market and planned to exercise the early termination clause of its lease with the goal of vacating the premises in May 2029 – the original lease ran through 2033.
The new lease begins in June 2029 and runs for 16 years.
“We are proud to continue our relationship with Fannie Mae and want to thank them for their partnership as we worked together to complete a new lease for their headquarters at Midtown Center,” said Carr Properties CEO Oliver Carr in a statement. “We are thrilled to have Fannie Mae as a customer for many more years to come.”
Carr is the property’s majority owner, though in 2021 it sold a 49% stake in property to South Korean investor syndicate IGIS Asset Management. At the time, the property was valued at $980 million.
Photo: Carr Properties
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