As reported by GlobeSt.com last June, the two companies had reached an agreement in principle on this deal. The building that BNA will soon call home, Mall Two, is located at 1801 S. Bell St. near Reagan National Airport and the Pentagon. Built in 1969, the structure is considered a class A facility, but will undergo substantial renovations to accommodate its new tenant.
Vornado will come into possession of BNA's three office buildings located in the West End area at 1227, 1229 and 1231 25th St. NW. Vornado plans to maintain one of the buildings, a 130,000-sf structure, as an office property and convert the remaining two structures into residential condominiums.
The office market in DC remains tight; the overall vacancy rate in the West End, according to Cushman & Wakefield's Year-End 2005 MarketBeat Series report, is 3.2%, and the demand for condos is also maintaining its strength, with prices having increased by over 21% in 2005.
Both transactions between Vornado and BNA are on schedule to close in the second half of 2007 and BNA, as reported in June, will relocate its headquarters in 2007, as well.
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