TYSONS, VA–Yesterday The Meridian Group and Rockefeller Group announced they had formed a JV to co-develop a 20-story, 437,000-square-foot trophy office building at Meridian Group's The Boro development.
Read Meridian, Rockefeller Group Form JV To Develop Boro Tower
Rockefeller is hardly new to development — it has developed office projects throughout the New York region, in the southeast, Mid-Atlantic and West Coast, including a recent closing on 29th Street in Manhattan for a residential development.
The Boro Tower, therefore, is a significant deal for the Rockefeller Group as it represents both the company's largest ground-up office development outside New York and its first in Washington, DC, according to Daniel Moore, EVP and head of Urban Development for the New York-based company.
The company expects to do more such projects in the area, he tells GlobeSt.com.
“Washington, DC is one of the top five markets in the US; it has a presence that transcends any variations in the leasing market at any given time,” he says. “As we grow our national presence, DC is one of our top markets.”
Read “We Did Not Have A JV Structure In Mind At The Beginning”
The Rockefeller Group approached The Meridian Group about a development deal, according to Gary Block, chief investment officer of The Meridian Group. “They wanted to do a trophy office building in a A plus, urban core location near a metro station,” he tells GlobeSt.com.
“So we brought them [into Boro Tower]. We weren't looking for a capital partner for this particular deal but thought Rockefeller Group would be beneficial for the project. It's a straight up 50-50 deal.”
Moore says that the company will approach development in Washington, DC, by responding to the specific needs of each of the submarkets it is targeting. The Boro Tower, for instance, has the appeal of being new office in a popular work-live-play enclave under development, he says.
“DC has strong demographics and there is an interesting evolution in office demand, but I also think there will continue to be residential opportunities. Ultimately it is all about understanding markets at the granular level.”
Rockefeller Group ultimately aspires to be in five to six major gateway coastal metros and their associated submarkets including the West Coast, Moore says.
As with DC, its activities in these other markets will all be “opportunity driven,” he says.
TYSONS, VA–Yesterday The Meridian Group and Rockefeller Group announced they had formed a JV to co-develop a 20-story, 437,000-square-foot trophy office building at Meridian Group's The Boro development.
Read Meridian, Rockefeller Group Form JV To Develop Boro Tower
Rockefeller is hardly new to development — it has developed office projects throughout the
The Boro Tower, therefore, is a significant deal for the Rockefeller Group as it represents both the company's largest ground-up office development outside
The company expects to do more such projects in the area, he tells GlobeSt.com.
“Washington, DC is one of the top five markets in the US; it has a presence that transcends any variations in the leasing market at any given time,” he says. “As we grow our national presence, DC is one of our top markets.”
Read “We Did Not Have A JV Structure In Mind At The Beginning”
The Rockefeller Group approached The Meridian Group about a development deal, according to Gary Block, chief investment officer of The Meridian Group. “They wanted to do a trophy office building in a A plus, urban core location near a metro station,” he tells GlobeSt.com.
“So we brought them [into Boro Tower]. We weren't looking for a capital partner for this particular deal but thought Rockefeller Group would be beneficial for the project. It's a straight up 50-50 deal.”
Moore says that the company will approach development in Washington, DC, by responding to the specific needs of each of the submarkets it is targeting. The Boro Tower, for instance, has the appeal of being new office in a popular work-live-play enclave under development, he says.
“DC has strong demographics and there is an interesting evolution in office demand, but I also think there will continue to be residential opportunities. Ultimately it is all about understanding markets at the granular level.”
Rockefeller Group ultimately aspires to be in five to six major gateway coastal metros and their associated submarkets including the West Coast, Moore says.
As with DC, its activities in these other markets will all be “opportunity driven,” he says.
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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.
