(Read more on the debt and equity markets.)
ALEXANDRIA, VA-A $196-million package of debt financing has been arranged for Spaulding & Slye Investments' and Prudential Real Estate Investors' Victory Center, a 1.3-million-sf master planned office development here that is being built on spec. Managing director Martin Kamm, VP Jim Gladden, VP Stephanie Lynch, and associate Brandon Flickinger in Jones Lang LaSalle's DC-based Real Estate Investment Banking team arranged the financing through Wachovia Bank & Trust.
Located at 5001 Eisenhower Ave., the project's development is already underway for phase 1--the renovation of the existing 606,114-sf Eisenhower Building. This part of the project calls for the 35-year-old 11-story building to be redeveloped into a class A, LEED-certified office facility. The building is expected to be finished in October 2008. Phase II will include the development of two additional class A buildings totaling 641,000 sf of space on two adjacent land parcels.
Joe Brennan, SVP at Jones Lang LaSalle, tells GlobeSt.com that no preleases have been signed but interest in the buildings by several government agencies is very high due to their location and their design. "We have positioned this for the Department of Defense, Department of State and Department of Homeland Security contractors."
The buildings, for instance, will be compliant with anti-terrorism design and engineering standards. Demand is expected to be high because, according to Kamm, there are few class A buildings in the DC area that can satisfy the government's stringent space requirements. Asking rates will roughly be just below $40 per sf, Brennan adds.
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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.
