At the time the companies knew Verizon wasn't going to renew its lease, which was scheduled to terminate in 2008, Zach Wade, MRP Realty SVP, tells GlobeSt.com. They were sanguine about Verizon leaving early because of the limited availability of large blocks of space in the area. "When we were looking at the building to buy there were 13 blocks of comparable space inside Beltway," he notes. "Now that number is nine, and a handful of those can't do large deals for one reason or another." MRP and Rockpoint agreed to terminate the lease with Verizon "at favorable terms and conditions" in order to get the building on the market earlier, he says.
The companies are investing between $8 million to $10 million in a rehab, which should be completed by April 2008. One possible tenant might be a health club which would occupy part of the first floor, Wade says. Asking rates for the building will range from the high 30s per sf to the low 40s per sf.
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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.
