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June 17, 2014
Moves on MacArthur
Western Potomac Economic Partnership is a sponsor of our DICE event (Data Center Investment Conference & Expo), June 26-27 at the Renaissance Capital View in Arlington (register). Discover why Western Virginia's Eastern Panhandle is an ideal business location and its great quality of life. Click here.
A few months ago, LaKritz-AdlerReal Estate Investments was the seller in one of the biggest price PSF sales ever in DC. The firm is back at the deal table, this time on the buy side. (It gets tiring doing those Scrooge McDuck head-first dives into gold coins. Sometimes it's easier to spend 'em.)
Yesterday, the firm's Josh Adler (right, with partner Robb LaKritz) confirmed to us that it has just purchased 5185 MacArthur Blvd, a 43k SF office building not far from the Maryland-DC border. Josh says the firm paid seller Rock Creek Property Group $14.9M for the fully leased building, which includes national credit tenants Starbucks and UPS on the ground floor. It was an off-market deal, Josh says, and LaKritz-Adler saw the property as "a diversified income deal that had more attractive income characteristics than deals further downtown." The firm may put some basic renovations into the property, he says, though it was last renovated about 15 years ago.
The purchase comes on the heels of LaKritz-Adler's blockbuster sale of the Dupont Circle Starbucks building, which it sold to Harbor Group International for almost $1,700/SF earlier this year. (Only now do we we realize that price includes college tuition for every Starbucks employee.) Josh says the firm is always looking for new deals, though its prefers to remain selective with its new investments.
This Morning at the Willard: Public Buildings Commish on the FBI
At our BisnowFederal Property/Public Private Partnerships Summit this morning, newly minted Public Buildings Commissioner Norman Dong says the short list of sites for the FBI that meet or exceed GSA's requirements should be released by the end of the month. Norman says GSA will also issue an RFP later this summer related to the Federal Triangle South redevelopment.
We also heard from Julia Hudson, in charge of the National Capital Region for GSA, who says that despite the agency's mandate to "freeze the footprint," there are still opportunities out there for new federal leasing. (Even frozen glaciers move. It's science.) Agencies won't stay put in one place as long as they used to, says Julia (here with Arent Fox's Jon Bouker), which could give the sluggish federal leasing market a chance to churn.
Stay tuned for more Summit coverage tomorrow.
Funky (Part 2)
Many of you responded to our call yesterday for your favorite funky designs in DC, including architectural photographer Boris Feldblyum, who says he enjoys the look of the Millennium Building at 19th and K streets. Boris, who's photographed countless buildings throughout the region, says he likes the design (it was a renovation of an older office building) since it broke "the monotony of K Street boxy facades" in a unique way.
G2EM president Girard Gurgick is a fan of the Center for Innovative Technology's HQ in Herndon, which he says is "really the only architectural sculpture around."
JLL's Scott Homa is all about the newly redeveloped Wonder Bread building in Shaw, since it's "DC's version of NY's East Village." We'd love to hear about your favorite funky design—email Chris Baird with your pick.
ICYMI: Monday Properties Gets Go-Ahead in Rosslyn
Monday Properties got some good news over the weekend when the Arlington County Board of Supervisors approved the firm's plans to replace two of its Rosslyn office buildings (1401 Wilson Blvd and 1400 Key Blvd) with a new 1M SF mixed-use development. The buildings' parking garage is where Deep Throat (aka the FBI's Mark Felt) held secret meetings with Washington Post reporter Bob Woodward. In place of the buildings, Monday will construct a new 513k SF office building (on the right), and a 275-unit, grocery-anchored apartment complex. (Clandestine meetings can still take place in a location where nobody goes, the grocery's rhubarb section during winter. It's a summer delicacy, people.)
Arlington County has already commemorated the history with a plaque outside the garage (which we snapped yesterday), and the plaque will stay put despite the oncoming redevelopment.
This Morning in Seattle
Nearly 300 deferred the beautiful Puget Sound summer this morning to join us at the Four Seasons in Seattle to hear the City's director of planning, Marshall Foster, and others talk at our Future of the Waterfront event. They'll be taking down the so-called Alaskan Viaduct along the bay (the equivalent of Whitehurst Freeway along the Potomac) and creating a cutting-edge boardwalk to connect the urban center to the water.
Did you imagine so many people wear coats and even ties in the Land of Amazon and REI? (Not shown: other events we held this morning in Charlotte and Toronto—but you know they dress up there.)
NEW BISNOW VIDEO: Are YOU Investing in Real Estate?
Sure, you work for real estate companies. But do you own and invest yourself? Well, maybe it's time. We asked prof. Peter Linneman to record 90 minutes just for our readers on how he'd advise you to do it. Here's some topics he takes up:
Should you invest in REITS or private deals?
Visiting the real estate you invest in
Do you need spreadsheets?
Evaluating the people in a deal
An unexpected danger of good credit quality tenants
Understanding the bet you're making
What to negotiate
Operating risk v. financial risk
Learning from the competition
Different kinds of property
The best time to buy or sell
The biggest skill you need
Remembering the fundamentals
Tip for short-term investments
A secret about high quality real estate
We've specially priced this tape to make it as widely available as possible. Just $59!
YOU TELL US: Should Real Estate Drones Be Regulated?
While the FAA has yet to decide how to regulate drones for commercial use, the remote-controlled, unmanned aerial vehicles are already being put to work in commercial real estate. Developers and construction managers are using them to keep track of a development's progress, while owners and brokers are using them to show space from an entirely new perspective. While many folks in the industry are embracing the new technology, it's also been met with some reservations, with naysayers citing “huge invasions of privacy” and safety concerns. Should regulations be put in place for drone use in commercial real estate? Read our story in Real Estate Bisnow National and tell us your thoughts by clicking the survey to the left.