The land purchase was made pursuant to an option agreement that was part of Mack-Cali's February 2006 acquisition of the 842,300-sf park, which was reported in GlobeSt.com at the time.
Mack-Cali took ownership of the seven-building, class A office complex for approximately $162 million from Springhill Lake Associates Community Realty.
The new parcel can accommodate the development of up to 602,000 sf of office space. Its sellers, Greenbelt Associates and Sixteenth Springhill Lake Associates, LLLP, were represented by Nicholas Pappas of Eastdil Realty Company LLC.
Mitchell E. Hersh, president and CEO of Mack-Cali, tells GlobeSt.com that the company will be solidifying it development plans for the acreage within the next few months. "It can support a mixed-use development that can include amenities that could support the park, such as a hotel," he says. Hersh says the company plans are not solid enough to project development costs.
The Cranford, NJ-based REIT has been contemplating expanding its footprint in the DC market since at least 1999, Hersh says. "Our larger vision is to expand in areas that surround metro DC. Right now we have a pricing dislocation opportunity to do more within the District but I also think that many of the suburban markets around the Beltway are fertile as well."
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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.
