Award of Excellence
Best Real Estate Transaction: Tenant Lease - 20,001 SF and over

Project Team

The Meridian Group - (Owner + Developer)
Hickok Cole - (Architect)
Grunley Construction - (General Contractor)
CBRE - (Broker)
The Meridian Group - (Project Management)

Project Description

Enovational, a data-driven web and app development company, signed a lease in June 2021 for 97,000 square feet at The Aleck, the recently refurbished and rebranded building at 1400 L Street NW in Washington, D.C. The fast-growing Enovational, based in Washington, will relocate its offices from 1101 K Street NW. The company will lease the entire 7th through 12th floors, starting at the end of the year.

Enovational was seeking an updated, purpose-built space with amenities, which is exactly what The Aleck offers. Offering a contemporary take on a traditional office building, The Aleck recently underwent a $20 million renovation designed by a nationally renowned architecture firm. Some of the building’s features include:

• The Aleck Lounge, a tenant-only lounge and entertainment space with gourmet catering kitchen;
• Two large conference rooms with retractable walls that allow tenants to host both intimate and large gatherings;
• An outdoor terrace dedicated to tenant events and casual gatherings;
• An expanded two-story lobby with ornamental stairs leading to the third-floor Aleck Lounge;
• A spacious tenant-only workout studio, large secure bike lounge, locker/shower facilities, and an auxiliary fitness room for yoga and other classes;
• A wellness studio featuring five private workout, meditation, yoga and mother’s rooms;
• A custom-building app that gives tenants access to events, services, amenity reservations, the wellness studio and more.

Enovational’s first tour of The Aleck building occurred on March 11, 2020 – just days before the world shut down during the Covid-19 pandemic. The pandemic presented numerous challenges during the life of the transaction – from how to bring people safely on-site for tours or vendor walkthroughs to prolonging negotiations due to the uncertainty of what the future would look like. The owner and owner’s representative leasing team were able to present a proposal a month after the initial tour and worked hard throughout the ensuing year to bring the transaction to a successful close in June of 2021. Additional provisions had to be focused on, such as how much occupancy triggered beneficial use given the uncertainty of how Covid-19 would affect the company’s return to office plans. The forward-thinking design of the building, as well as forward-thinking approach by both tenant and owner made this lease a success.

The Enovational lease is one of the largest transactions to occur in the D.C. market in 2021 and proves The Aleck has the features to attract a wide array of tenants, including leading technology companies. The transaction is an encouraging sign for the struggling D.C. office market, which recorded a vacancy rate of 18.4% In Q2 2021. It also highlights one of the stronger sectors in the market: The tech sector has continued to perform well throughout the pandemic. Enovational’s expansion and long-term commitment to the Aleck showcases the District as a top city for tech talent. D.C. continues to attract and retain technology companies who are in need of highly educated tech professionals to fill their recruitment pipeline. The transaction not only had a significant impact on the local market, but in many ways reflected broader national trends in leasing and the office market as a whole that have accelerated during the Covid-19 pandemic.