How YFU Moved to DC and Saved $400,000 A Year

WASHINGTON, DC-Non-profit Youth For Understanding USA will take close to 32,000-square feet in Douglas Development's renovated former Wonder Bread Factory-turned office in the Shaw submarket. As it makes the move from its current headquarters in Bethesda, MD, the non-profit is saving itself a rough $400,000 a year in savings over its next best lease option, CEO and president Michael E. Hill tells GlobeSt.com.

The non-profit vetted six buildings and another building in Bethesda close to a metro stop was the closest competition. Concessions with Douglas Development, however, included a generous build out allowance and perhaps more importantly, flexibility on sub-leasing. That $400,000 savings, Hill says, "includes some of the rental activity we will do in the space. It was part of our comprehensive business plan." In exchange YFU is signing a 15-year lease.

As it happens, YFU had wanted to return to the District after an 11-year stint in Bethesda, where the non-profit had moved in order to save money. YFU is rebranding and repositioning itself and part of that new image requires a new, unique-looking headquarters in the nation's Capital. "We didn't just want another boxy suburban office building," Hill says.

Newmark Grubb Knight Frank approached YFU about a potential move and came away with a challenging assignment: a unique signature presence as well as space to growing its educational programming. All at an affordable price.

The Wonder Bread Factory redevelopment hit all the high notes and a deal was soon struck. YFU will be using the second floor of the building plus the first floor space that Douglas had originally intended to devote to retail.

Hill credits Douglas Development's Normal Jemal with pushing the deal across the finish line. "He didn't treat us as this were a simple business transaction. He pushed hard to make it work for us, meeting with me personally to understand our mission."

Bill Zonghetti and Brian Schmergel of Newmark Grubb Knight Frank represented YFU. Doug Mueller and Evan Behr from JLL worked with Douglas Development.