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THIS MORNING’S
HOT NEWS FROM RB
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| 520 of you fine folks, either very intellectual or suffering cabin fever, packed our R/B Corridor Breakfast & Schmooze this morning to get the inside scoop. We believe we actually heard two: Deloitte will take an additional 150k SF at Waterview, and in the middle of the snow last week, the Palatine apartment building sold literally on the Arlington courthouse steps. |
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It was standing room only at the NRECA Conference Center in Arlington as six of the key real estate figures in Rosslyn/Ballston tackled topics like what it will take to get cranes swinging again—and also what keeps RB rental rates high and vacancy rates low.
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We snapped Shooshan Companies founder John Shooshan (who’s head is not bandaged—that’s just the projector white light we thoughtlessly made panelists sit in) with Monday Properties Chief Development Officer Tim Helmig. Tim says his confidence that RB will be one of the most dynamic areas in the country in just a few years is based on job growth: The Feds are expected to add 120k jobs between now and 2012, he says, and the first place lenders will want to return to as the markets recover is RB. John says recovery will not be quick but financing may become more “sane” if it no longer requires full recourse or 50% equity.
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Deloitte, we learned, is planning to add 150k SF to the 170k feet it took at Waterview in December. Tim says that’s a huge vote of confidence in Rosslyn to see the accounting behemoth doubling down on an alternative to Tysons. On our way back to DC today, we snapped the Waterview to show you it’s still there even in the snow.
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We also wound our way around streets like Courthouse, Taft, and Troy to find the Palatine, which iStar bank sold in a foreclosure auction to Crescent Heights for $118M, or about $450k/unit ($440/SF). Our panelists said the price reflects strength of the market but also suggests the units won’t be converted back to condos, which probably wouldn’t fetch much more than they cost. (EQR’s purchase of Vista on Courthouse a couple weeks ago is also said to be evidence for these conclusions.)
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Cushman & Wakefield’s Peter Berk and JBG’s Brian Coulter. Brian says the R/B Corridor is what Tysons Corner hopes to be in the future thanks to “smart growth” and Metro access. Two challenges in the market: a complicated entitlement process in Arlington and a lack of great architecture, says Brian. Peter says rental rates are basically where they were 24 months ago (though concession packages are up a little) and are a reflection of the area’s desirability due to its residents’ high education, urbanity, diversity, and 24/7 lifestyle.
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McWilliams Ballard co-founder Chris Ballard with Vornado/Charles E. Smith chief leasing officer Brendan Owen. Chris says cap rates have pushed condo conversions off the table, making the only option financed apartment product. With 500 units under construction now in R/B and 150 of those already sold, the supply will dwindle quickly and resale will be the focus until new product arrives. Brendan called R/B “less overbuilt” than other areas, helping vacancy rates sit at 7.5% compared to much higher rates elsewhere in the state and region.
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Arlington’s Director of Economic Development Terry Holzheimer kicked things off with a trip down R/B memory lane. He says Rosslyn started off as a “bull’s eye” project with five circles on a map. Those circles became critical metro stops that make Arlington the walkable, urban corridor it is today.
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Recognized as one of the best “land lawyers” around, Nan Walsh used 25 years of experience to preside over the entire R/B Corridor. (OK, that’s just a picture but she did preside over our panel.) With a background as lead zoning counsel to major developers in Arlington, she’s been with Walsh Colucci Lubeley Emrich & Walsh since she graduated. (Given her youthful looks, we assume she means from elementary school.)
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Bognet Construction’s Jeff Kaiser, KTA’s Derek Gallardo, WFT Engineering’s Reardon Sullivan, and Bognet VP Jennifer Bognet. WFT just moved into a brand new office built by Bognet in Gaithersburg. Next up, Jennifer says the company will break ground on the 41-unit Brookland Art Space, which provides housing, studios, and galleries for local artists.
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These ladies were on hand to rep Rosslyn: A-SPAN Executive Director Kathleen Sibert, Rosslyn BID’s Monique O’Grady and Lee Anne Haggerty. Monique has been prepping for the BID’s annual outdoor movie series kicking off in April and organizing a party on 10-10-10 to unveil the recently named “Artisphere” cultural center.
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| UPCOMING EVENTS |
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February 17 - UMD - Book Signing and Lecture with R. Donahue Peebles. Architecture Auditorium, UMD-College Park. 6:15-8:00pm. RSVP tboggs@umd.edu
February 19 - NAIOP - Sustainability 101: Gain an understanding of LEED and Sustainability from start to finish. Ruppert Properties. 11:45-1:30. Info
February 23 - Bisnow Breakfast & Schmooze: Hot Topics in Federal Spending, with Veterans Affairs CIO Roger Baker. Fairview Park Marriott. Info
February 23 - Bisnow Breakfast & Schmooze - The New NoMa - Learn how the neighborhood has transformed. 7:15-9:45am. Info
February 24 - Commerical Real Estate Women - Explore the world of Real Estate Investment Trusts (REITs). 11:30-1:30. Capital Hilton. Info
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