Roadside Development, in partnership with Hudson Bay Capital, has acquired Bethesda Towers, an approximately 600,000-square-foot office campus consisting of three buildings in downtown Bethesda, Maryland.
The property, located at 4330 East-West Highway, was acquired from Moore & Associates, which will continue to manage the property. Financial terms of the transaction were not disclosed.
The acquisition represents a long-term repositioning opportunity for the partners, who plan to leverage Roadside Development’s experience in mixed-use, retail-focused, and adaptive reuse projects to reimagine the site over time. The property occupies a prominent location at the gateway to downtown Bethesda and offers direct access to major transportation routes and key employment centers.
Bethesda Towers is situated within walking distance of Bethesda’s retail, dining, and entertainment destinations, including Bethesda Row, the Capital Crescent Trail, and the Bethesda Metro Station. The campus also provides convenient access to Washington, D.C., Marriott International’s headquarters, the National Institutes of Health (NIH), Suburban Hospital, and other major employers in the region.
Roadside Development said the acquisition aligns with its strategy of investing in high-quality, transit-oriented assets located in established urban markets. The company is currently evaluating future opportunities for the site and expects to engage with the community as plans evolve.
The transaction continues Roadside’s active expansion strategy. The company recently entered the Pennsylvania market through its acquisition of the Galleria of Mt. Lebanon near Pittsburgh and continues to pursue additional acquisition and development opportunities.
Roadside Development is known for mixed-use and adaptive reuse projects across the Washington metropolitan area, including City Ridge, City Market at O, Cityline at Tenley, Purcellville Gateway, and Stonebridge at Potomac Town Center.
Mychael Cohn of Cohn Property Group represented Roadside in the acquisition. Debt and equity financing was arranged by David Borden and Jason Krane of Ackman-Ziff, while Brian Ashin of Paul Hastings served as legal counsel to Roadside.
Hudson Bay Capital Management is a global alternative asset manager that has served outside investors since 2006 and focuses on identifying undervalued investment opportunities while emphasizing risk management and capital preservation.
KEY QUOTES:
“This is a truly exciting opportunity for us to do what we do best. The Bethesda Towers campus presents a large-scale parcel with the potential to become a unique and transformative place at the gateway to Bethesda. We’ve had our eye on the property for quite some time and it will be a great collaboration with our partners at Hudson Bay Capital.”
Jeff Edelstein, President, Roadside Development
“Bethesda Towers is an example of the selective, high-conviction real estate investment opportunities we seek, with a compelling basis and clear path to value creation. Roadside brings deep expertise in this market, and we look forward to partnering with their team to realize an impactful long-term vision for the property and surrounding community.”
Eric Kaufman, Hudson Bay Capital
“Bethesda Towers fits right into our portfolio of high-quality, transit-oriented assets in established urban markets. Bethesda continues to be an exceptional place to live, work and raise a family. We’re in the beginning stages of conceptualizing what comes next for the property and we look forward to sharing our vision with the community.”
Rob Wolcheski, Partner, Roadside Development
