Jim Kornick, Jerry Burg and Matt Clinebell brokered the $24 million sale of a four-building, 184,168 SF portfolio of office buildings in Sterling’s Countryside Professional Office Park. Kornick, Burg and Clinebell were with Marcus & Millichap when they closed the transaction for the seller, Asset Capital Corporation. They have since moved to NorthMarq Investment Services in Bethesda. CSG Partners LLC, a Baltimore-based JV between Creaney & Smith and Prudential Real Estate Investors, acquired the four buildings, which have an aggregate vacancy rate of 35%, as a value-add investment. CSG plans to rehab the buildings.
Erkiletian Construction has acquired a warehouse in Alexandria for $18 million, or $182 per sf, from Security Storage. The 99,000 SF facility, located at 621 North Payne, will be converted into a high end apartment building. Don Mercer and Ryan Moody of GVA Advantis’ Tysons Corner office represented Storage in the deal.
Eight months after it purchased the sister building, Atlanta-based Piedmont Office Realty Trust acquired Rock Spring II from Opus East for an undisclosed amount. Eric Berkman and Steven Gichner of Grubb & Ellis repped Opus in the sale. Located on Rockledge Drive in Bethesda and now renamed Piedmont I and II, the connected office buildings are both eight stories, equaling 407,000 SF. They are currently empty. JLL will be handling the leasing.
Route 28 has registered stubbornly high vacancy rates for the last few years. However anecdotal evidence hints the activity is picking up. CACI International has signed a total of 220,000 SF in BPG Properties’ Commonwealth Centre at Westfields -- a mixed-use park at intersection of Route 28 and Westfields Boulevard located within the Westfields International Corporate Center development project. One of CACI’s leases is a full-building transaction: it will occupy a $48 million, 160,000 SF newly delivered office. CACI will also occupy space in a second building on which BPG has just broken ground. That lease is for 60,000 SF. Mike Christian and Junius Tillery of UGL Equis repped CACI. BPG was represented by Michael Shuler, John McEvilly, Doug Eliott and Rob Walters of Millennium Realty Advisors. At full build out BPG’s Commonwealth Center will be an ambitious $400 million development that will include approximately one-million SF of office and retail space, along with a Westin and an Element hotel. Each phase is dependent on leasing activity, of course; however that is becoming less of a challenge, Roy Perry, a senior vice president with BPG, reports. “The market has gotten a lot faster in the last 60 days,” he says.
Appian Realty Advisors has also announced it recently closed space in a soft submarket: a 21,000 SF, full-floor office lease at 12120 Sunset Hills Road, just off the Dulles Toll Road in Reston. PRA International sub-leased excess space to Executive Office on the top floor of the six-story, 120,000 SF building. Dan Gonzalez and Todd McManuns represented PRA International in the transaction.
Aronson & Company has signed a 75,000 SF lease to occupy two full floors in a new building in Rockville's King Farm complex. This is an expansion of space the accounting firm occupies elsewhere in King Farm. The targeted move-in date is May 2009. A&C was represented by William Herman and Eric May of Monument Realty and worked with Brian Katz and Michael Gribbon of Americas Capital Partners to negotiate the lease. A&C retained Hickok Cole Architects of Washington, D.C. to custom-design the space.
Management Sciences for Health has inked a lease with the State Teachers Retirement System of Ohio, to occupy 37,791 SF at Ballston Station, located at 4301 N. Fairfax Dr. Transwestern’s Alan Asman and Bernie McKeever represented the building owner in the transaction, which was an expansion and lease renewal. Michael Altman of Cassidy Pinkard & Colliers repped Management Sciences.
Panattoni Development will be building an industrial development on land it has acquired from Marlo’s Furniture in Upper Marlboro. The California-based company just acquired 51.45 acres there to that end. Andy Stape, Joe Friedman and Mat Adler of Transwestern’s ASSET Investment Sales Group and Mark Glagola of Transwestern’s Columbia office represented Marlo in the $6.3 million land sale. The three parcels of land can support up to 500,000 SF of industrial development.
Lerner Enterprises has broken ground on a two-tower hotel that will house two flags: a 112-room Hilton Garden Inn and a 87-unit Homewood Suites by Hilton. Located in Rockville’s master planned community Fallsgrove, at the intersection of Shady Grove Road and Blackwell Road, the new hotels will deliver next Fall.
TIAA-CREF provided $172.5 million in cross-defaulted and cross-collateralized construction and permanent loans to Archstone Smith. The loans are secured by three multifamily properties under construction in St Charles, Laurel and Rockville: specifically, the Westchester at Contee Crossing in Laurel; the Westchester at the Pavilions in St Charles and Westchester Rockville Station. Sutherland law firm’s Lisa Rosen, Sheila Novak, Churchill H. D. Hooff and R. Alex DuFour represented TIAA-CREF.
HFF’s Bob Donhauser, William Asbill and Cary Abod have secured a $116.1 million refinancing package for Lowe Enterprises, which is in the process of renovating its 624,573 SF Century Center I and II office towers in Crystal City. The three-year adjustable rate loan will be used to repay original loans as well as support the renovation.