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January 31, 2008
Deal Sheet
(our more serious side)



Fund Raising:

At least one investor is feeling bullish about new home sales in DC, a few years down the road, at least. Duball, a Reston-based firm founded in 2004 by Marc Dubick as a joint venture with Steve and Martin Alloy (president and founder/chairman of Stanley Martin Companies, respectively) is raising equity to invest in residential land parcels. Called Duball Land, the fund will be focusing on deals in the $5 million to $50 million range. The current market has left a void in the raw and bulk land purchase market, the firm says (i.e. no one dares to step foot in it now) and the company wants to position itself for the next cycle. The fund, which is a JV with the CMI Group, will be acquiring and entitling land with its $300 million capital pool.


Q1 2008 will be better than Q4 2007, promises a new report by Studley, which finds that space available in DC during Q4 spiked by 31% from the previous quarter. Delivery of several new buildings coupled with tenants that were hesitant to sign new leases due to growing fears of recession are the culprits. Activity is expected to pick up now, Studley reassures readers, as large tenants prepare to finalize lease negotiations.

Also from the report:

  • Asking rents at the end of the year rose 9.8% from the third quarter and 11.4% from a year earlier.
  • During the final months of 2007, Northern Virginia landlords began conceding more in lease negotiations as competition increased. Asking rents in the fourth quarter rose 3.1%, to $29.87 per SF, from the third quarter, the highest quarterly increase since 2006.
  • Landlords in the suburban Maryland markets could follow suit (if they haven’t already) considering that only 30% of the 3 million square feet of construction expected to deliver this year has been leased to date.

One of those soon-to-be delivered buildings bumping up availability is 700 Second St. NE, a 515,000 SF building being developed by Louis Dreyfus Property Group and Fisher Bros.  This past week, CBR was tapped to handling leasing for the building, one of the largest District’s office buildings under spec development. It’s part of a  three building complex of class A, ten-story buildings being designed to Silver LEED standards  that will deliver in the fall of 2009. CBRE's Bruce Pascal, Roberta Liss, Andrew Felber and Mark Klug are representing Dreyfus. Asking rates will be in the mid $50s per SF.

CB also signed on Katten Muchin Rosenman to occupy several floors at 2900 K St., which is owned by Armada/Hoffler. The Chicago-based law firm inked a lease for 72,000 SF, which it plans to occupy this summer once its move from 1025 Thomas Jefferson St. is complete. Pat Marr and Art Santry of CB Richard Ellis represented Katten; Bob Schwartz at Jones Lang LaSalle repped Armada/Hoffler.  (See our recent Bisnow Legal issue on the move.)


Monument Realty and local development services and project management company Urban Realty Advisors are merging in order to offer more comprehensive advisory and consulting expertise–such as  due diligence, feasibility analyses, financial strategies, and asset management for single properties and real estate portfolios—as well as third party fee-based development capabilities.  Some of URA’s clients include Change to Win, a partnership of seven affiliated unions; Thayer Lodging Group; Aronson & Co.; and the Service Employees International Union.


Andrew McAllister and Michael Ryan of Cushman & Wakefield’s Capital Markets Group negotiated an $87 million package from Bank of America for the View14 Apartment project now under development in the U Street Corridor. McAllister was mum on much of the details (interest rates and so forth) but does say terms and structure of the transaction are the best he has seen in the market since the credit crunch began. It’s a three tranche loan, with the first two tiers supported by floating rates and the third with a fixed rate. The two top tranches have been financed at 75% of cost and 85% of cost, respectively. The third, to 95%.

Developed by Level2 Development and Centrum Properties, View 14 Apartments will have 185 luxury apartments and some 30,000 SF of retail.


Got an interesting deal you’ve been able to squeeze out of the capital markets these days?  Some of this may be sensitive, so we aren’t expecting to get all of the details, just enough to give readers a sense of what the “best” is now for this market. Drop us a note on this (or any subject):  info@bisnow.com. 



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