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Federal Judge Voids TSA Lease in Alexandria

Federal Judge Voids TSA Lease in Alexandria

A federal judge has voided the 665k SF lease the Transportation Security Administration signed in Alexandria this summer after Boston Properties protested the bid process in a lawsuit.

US Court of Federal Claims Judge Charles Lettow ruled this morning that the GSA unlawfully favored the 5001 Eisenhower Ave property, owned by Prudential Real Estate Investors, over Boston Properties' site near the Franconia-Springfield Metro, the Washington Business Journal reports. Judge Lettow sealed his ruling, so it's unclear exactly what the legal issue was that he felt voided the agreement.

One clue: GSA's rental rate of $36/SF appeared to be conditional, based on the Alexandria City Council approving tax breaks. The deal was one of the last signed by Mid-Atlantic building commissioner Darren Blue before he resigned.

TSA had planned to move into the space in 2018, after its leases in four locations, including two Brookfield-owned Pentagon City buildings, ran out. Now, it's unclear whether the lease will be put back out to bid or whether Boston Properties, the GSA's second choice, will be awarded the lease. [WBJ]