Also, according to MRP managing principal Bob Murphy, the firm has at least two other projects in the pipeline--in northern Virginia and Downtown Washington, DC--that are worth $350 million all together.
One is a mixed-use project in Loudoun County, VA, encompassing 150,000 sf of retail and hotel and 500,000 sf of office. MRP Realty has purchased 70% of the land thus far, Murphy says. He expects to announce more details about the $100-million project in September.
The other project is a $250-million mixed-use development in Downtown Washington, DC consisting of 800,000 sf of office, hotel and apartment space. The firm is currently in the entitlement process, which it hopes to have completed by the end of the year.
Murphy characterizes the firm's strategic approach as one that creates value in pre-development. "It is a difficult time to buy property right now. We are creating equity in the land by adding value upfront, either through re-zoning or changing use," says Murphy. That way, even if the market slows, the project still has value, he explains.
For the Carlyle office building, the firm decided to transform one of the parking levels into office space. "We decided that the building didn't need five levels of parking since it was located near a metro stop. So we changed it to four levels of parking and 10 levels of office instead of nine," Murphy says.
The $75-million building, which is next to the Eisenhower Avenue Metro station and the Patent and Trademark Office, also has retail available at the ground level. The firm has received a pre-construction commitment by the American Society of Clinical Oncology (ASCO) to purchase the first five floors of the building when the project is completed in January 2008. The remaining 125,000 sf, floors six through 10, are available for lease.
The architect for Carlyle Overlook is Davis Carter Scott, Ltd. and the general contractor is Harvey-Cleary Builders. ASCO's representative in acquiring the condominium interest was the Ezra Co., while MRP Realty was represented by Trammell Crow Co. MRP Realty's capital partner, Rockpoint Group, LLC, is a global real estate investment management firm with offices located in Boston, Dallas, San Francisco, Frankfurt, London and Tokyo.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
