Story Ideas  •  Events  
Sign Up for Free! | Forward to a Friend
If you don't see images, click here to view
Real Estate Bisnow
Legal BisnowWomen BisnowTech BisnowAssociation BisnowNYC Real Estate
   
October 25, 2007
 
 

 

Deal Sheet

October 25, 2007


  Editor's note: This is our first "Deal Sheet." It's an experiment. It would come out weekly. Let us know if you like it or don't like it. Direct your comments right to the top: mark@bisnow.com.

LEASES

This past week the GSA should have announced which lucky location would win the Department of Justice’s 500,000 sf consolidation lease. No news was forthcoming, though, leaving building owners and local economic development officials anxiously waiting.

Word on the street has it that NoMA is seriously in the running, with four potential sites under consideration out of a total of seven or eight sites within the greater Washington area. Another, according to the scuttlebutt, is Mount Vernon Triangle.

Elizabeth Price, head of the NoMA Business Improvement District declined to discuss the rumors but did say that her little part of town has more than enough capacity to absorb a new 500,000 sf lease. “We have 1.5 million sf of office space that has recently been completed, plus 3 million sf of new mixed use development.”

Possible picks would be the 12-story, 347,000-sf Tishman Speyer building under construction at 1100 First St., the Constitution Square site at 100 M St. and the Trammell Crow development at First and K St., also just breaking ground.

Another potential pick would be H St. and New Jersey Ave., a site that is owned by the District and leased long term to Bennett & Owen, a developer and property manager, which is expected to redevelop the site into an office building.

Should it pick NoMA, the DOJ lease would take a huge chunk of premier space from the market, Price says. “It also would bring 3,000 employees to the area, many of them well-paid lawyers, and that would drive retail and hopefully residential too,” she says.

 

Other news in NoMA…Even if it doesn't land the DOJ lease -- or rather, especially if it doesn't land it -- NoMa plans to ratchet up its marketing and development activities now that the BID is completely established. Price has plans to hire a program manager later this year. She’s looking for someone with a graduate degree, who is somewhat seasoned “because he or she will have to work independently,” and with an interest in urban planning, real estate development and marketing…The city is investing $7 million in the renovation of an abandoned building located at 65 Massachusetts Ave, NW. Once a school and then a homeless shelter, it has been boarded up for years. When it is completely renovated it will be a shelter for women. NoMA’s official Clean Campaign launch will be held in a small park site next to the building this Wednesday during which the city will formally announce its plans for the building’s renovation…Constitution Square is going out for construction bid. Development costs for the 2 million sf project should run about $350 per sf, including the cost of the land. The first phase of the project calls for the development of 1 million sf.

 

GROUNDBREAKINGS

Multi-Employer Property Trust broke ground on a six-story, class A office building in the 44-acre Milestone Business Park, located just off I-270 and Father Hurley Boulevard. Trammell Crow is developing the 160,000-sf building. Buildings I and II, which total 310,000 sf, are fully leased to ACS, Weatherbug and JDSU among other tenants. CBRE’s Dennis Owen, David Palank and Ben Powell will handle leasing and Buch Construction has signed on for the construction.
 
MEPT’s footprint in the park could get even bigger than the $35 million building now under construction, says Reid Townsend, senior vice president of Trammell Crow Co. “They can develop an additional 400,000 sf at the park.”

Indeed, the company is taking a flyer on this submarket. Trammell Crow is also developing for MEPT a 55-acre parcel called Century Corporate Campus in Germantown, which is on the west side of 270. A planned use development of more than 1 million sf of commercial space, the project is valued north of $400 million, Townsend says. “We are working with Montgomery County for a revised master plan which could be completed as early of December 2008.” The revised plan would allow for the development of a mixed use complex.

 

BRIEFLY...

Behringer Harvard is making an equity investment in and providing finance for the development of a luxury apartment building in Arlington. Construction has already begun on the 234-unit, 10-story tower, called Fairfield at Columbia Village – specifically, the underground parking that will be part of the package. There will also be a clubhouse, more than 7,000-sf of ground-floor retail – and, of course, the requisite nine-foot ceilings, balconies, granite countertops, stainless steel appliances and high-end kitchen cabinets for units. Fairfield Residential is developing the complex, which will located on Columbia Pike between South Jefferson St. and South Frederick St. Fairfield Residential, along with Brookfield Real Estate Opportunity Fund, is also Behringer’s partner in its only other DC investment – a 414-unit called Fairfield at Bailey's Crossroads.

**

STAG Capital Partners, a real estate firm that acquires and manages single-tenant, net leased properties throughout the United States, has acquired a 34,800-sf flex/R&D building in Sparks, MD, from the Davos Group LLC. The building, which is located on 3.5 acres of land at 15 Loveton Circle, is 100% leased to EA Engineering Science & Technology. Dennis Malone of Colliers Pinkard represented the seller.

 
 




 
CONTACT EDITORIAL                             CONTACT ADVERTISING                              CONTACT GENERAL INFO

This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. © 2007, Bisnow on Business, Inc., 1700 Pennsylvania Avenue, NW, Suite 400 Washington, DC 20006. All rights reserved.

Unsubscribe
 | Subscribe
 |  Forward to a Friend