Akridge, Mitsui Fudosan America Celebrate Groundbreaking of 168,000 SF D.C. Office Building

By Adrian Maties, Associate Editor

Full-service real estate firm Akridge and Mitsui Fudosan America, the U.S. subsidiary of Mitsui Fudosan Co., Japan’s largest publicly traded real estate company, celebrated the groundbreaking of a new trophy-class office project at 1200 17th St. on March 26. Mitsui Fudosan America CEO Yukio Yoshida,  Pillsbury Winthrop Shaw Pittman Managing Partner Christina Kearns, and Akridge Chairman Chip Akridge and Senior Vice President P. Brian Connolly spoke at the event.

1200 17th St. will total 168,000 square feet and will be located near the red, blue and orange Metro lines in Washington, D.C.’s central business district. It will feature contemporary finishes, with column-free client space, efficient floor plates, floor-to-ceiling glass and state-of-the-art amenities such as a full-service client-only fitness center, a green roof with entertainment space, bike storage and changing facilities, and ground-floor retail.

The boutique building is 63 percent pre-leased, with law firm Pillsbury Winthrop Shaw Pittman L.L.C. signing a 105,000-square-foot lease there in January. Four floors, totaling almost 60,000 square feet, remain available.

“This groundbreaking underscores the strength of the Washington real estate market and our city’s economy. The coming together of Mitsui Fudosan America, Pillsbury and Akridge demonstrates that true professionals, working together, will create the trophy-quality office building that Washington deserves,” said Connolly in a statement for the press.

1200 17th St. is targeting LEED Platinum certification. It was designed by Zimmer Gunsul Frasca Architects L.L.P. and will have Balfour Beatty as general contractor. The project is expected to be completed in the fourth quarter of 2014.

Mitsui Fudosan America joined Akridge on the project in August of last year, when it acquired First Potomac Realty Trust’s 95 percent stake in the property for $43.7 million. And it wasn’t the first project the two companies had partnered on. They also joined forces on 700 Sixth St., 1090 Vermont Ave. and The Homer Building at 601 13th St., N.W.

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Rendering courtesy of Mitsui Fudosan America.

Campus Apartments, Howard University to Develop $107M Student Housing Project

By Adrian Maties, Associate Editor

Campus Apartments L.L.C., the oldest and one of the largest privately held student housing companies in the nation, announced on March 19 it will develop two new on-campus residential facilities for Howard University. The project has an estimated cost of $107 million and is expected to energize the southeast core of the campus.

The two residence halls are designed to accommodate 1,360 students and will be built close to existing campus facilities to bring underclassmen closer to the vibrant core of the Howard University campus. They will include two-person semi-suites for underclassmen, communal social and study lounges, game rooms, laundry facilities and independent apartment units for faculty, staff and guests.

“The residence halls are designed to foster a true live-learn environment for underclassmen and will attract new generations of students for years to come,” said Daniel Bernstein, executive vice president & chief investment officer at Campus Apartments, in a statement for the press. Plans also call for a 200-person multipurpose room, classrooms and academic advisory offices. The facilities will provide a new home for Howard University’s Office of Residence Life, as well.

Campus Apartments and Howard University are working on the $107 million development together with Provident Resources Group, RBC Capital, Clark Construction and McKissack & McKissack. The project was financed through tax-exempt bonds issued by the District of Columbia and is slated for completion by August 2014.

“The addition of these state-of-the-art residential facilities will help to revitalize the Fourth Street corridor of our campus and establish a physical community for students to live, learn and socialize,” said Sidney Ribeau, president of Howard University. “By improving the quality of our housing, this project will aid in the recruitment and retention of students and enhance the overall collegiate experience at Howard University.”

Photo credits: McKissack & McKissack via Campus Apartments

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Monday Properties, Goldman Obtain $200M Construction Loan for 1812 N. Moore St.

By Adrian Maties, Associate Editor

Monday Properties and Goldman Sachs’ Real Estate Principal Investment Area have closed a $200 million construction loan with Pacific Life Insurance Co. for 1812 N. Moore St. The 390-foot building will be the tallest and greenest office tower in the Washington, D.C., region.

Monday Properties started work on the $300 million project in October 2010, using its own cash. Goldman Sachs joined the effort after buying a 78.5 percent stake in Monday’s 3 million-square-foot Rosslyn portfolio from Lehman Brothers.

1812 N. Moore St. is a 35-story, 580,000-square-foot trophy tower, one of the few privately developed LEED Platinum-registered office buildings in the United States and the first in the commonwealth of Virginia. It is located in Arlington’s Rosslyn neighborhood, within two blocks of major restaurants, hotels, banks and shops. Amenities include a two-story through-block main lobby with double-height ceilings, as well as on-site access to the Rosslyn Metro Station and a 480-space, fully enclosed, above- and below-grade parking garage.

As reported last year on this page, Monday Properties has selected CBRE to serve as the exclusive co-brokerage leasing agent for the property. No tenant signings have yet been announced, but CBRE reports that the Washington, D.C., metro area ended 2012 with an office vacancy rate of 10.6 percent and an overall asking rent of $52.08 on a full-service basis.

To date, 33 of the 35 stories have been built. A topping-out ceremony was scheduled for March 15, 2013. Project completion is expected in the fourth quarter of this year.

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Photo credits: www.1812northmoore.com.

Charts courtesy of CBRE.

Insight Prepares to Add TODs Valued at $153M to DC Area

By Adrian Maties, Associate Editor

Insight Property Group recently started work on two major transit-oriented apartment projects in the Washington, D.C., area. The Arlington, Va.-based multifamily developer is also nearing completion on a third project. The total cost of these three projects is $153 million.

Fenwick Station (reported on this page last month) is a 310-unit luxury apartment development located on the former Post Office site in Silver Spring, Md. The project has cost about $74 million construct; initial delivery of the residential units is planned for June 2014, with completion anticipated in December 2014.

Insight started construction on the Huntington Metro Apartments last week. Located in the Alexandria section of Fairfax County, Va., the project will deliver 240 apartments, at a total cost of $53 million. Initial delivery is scheduled for April 2014, with project completion planned for July 2014.

John Moriarty and Associates is the general contractor for both Fenwick Station and Huntington Metro Apartments. On Monday, March 4th, Cassidy Turley announced that Insight Property Group had closed on construction equity and debt financing totaling $129 million for the two apartment projects.

In the next couple of weeks, Insight Property also expects to finalize the construction of its Grayson Flats multifamily building in Arlington. The project has cost $26 million and will bring 67 ultra-luxury residential units to the desirable Rosslyn-Ballston Corridor of Arlington County. Amenities include a fitness center; resident lounge with kitchen, bar and billiards; outdoor terraces with gathering areas and fireplace; rooftop terraces; as well as structured parking. Clark Builders Group is the project’s general contractor.

“The two construction starts and the wrap-up of Grayson Flats represent three years of work,” said Insight Principal Michael Blum in a statement. “We have known and done business with the contractors, lenders and investors on these projects for years, and we are thrilled to be working together on such high-profile assets.”

Rendering of Huntington Metro Apartments courtesy of Insight Property Group.

Charts courtesy of Marcus&Millichap.

Renaissance Washington Completes $30M Hotel Renovation Project

By Adrian Maties, Associate Editor

Sunstone Hotel Investors Inc. has completed a $30 million renovation of The Renaissance Washington, DC Downtown Hotel.

The property, located at 999 Ninth Street at K Street, N.W., is close to Mt. Vernon Square, the Walter E. Washington Convention Center and numerous dining, entertainment and shopping options. The Penn Quarter neighborhood, Verizon Center, the Gallery Place Metro Station and Metro Center Metro Station are all within walking distance.

The Renaissance Washington, part of the Renaissance Hotels lifestyle brand of Marriott International, includes 807 guest rooms and suites. It also features 64,000 square feet of flexible function space and 30 breakout rooms, a 6,000-square-foot Vida Fitness center and a 4,000-square-foot Aura spa.

Dash Design of New York redesigned the guestrooms and guest corridor interiors. Guests will find a soothing neutral-color palate of khaki and coco-browns, with splashes of reinterpreted denim blues and reds. Upgrades include clean and modern furniture in each room, leather lounge and desk chairs inspired by 20th  century modernism, LED reading pin lights and luxurious spa-like bathrooms. Rooms also feature six-foot work surfaces, upgraded wireless Internet, 18-inch laptop safes, built-in mini-refrigerators, I-pod docking stations, Aveda spa products and 40-inch HDTVs.

“We are thrilled with our fresh new room product. When our guests discover our new rooms, they will appreciate the essence of modern lifestyle elegance without sacrificing warmth and functionality,” said Sharon Lockwood, the hotel’s general manager, in a statement for the press. “The new guestrooms and our recent lobby re-concept are part of the hotel’s evolution into more of a lifestyle space, beyond being termed a convention hotel.”

Renaissance Hotels represents a diverse collection of more than 151 hotels in 35 countries around the world. It was acquired in 1997 by Marriott International Inc. and is now one of the most popular brands in the Bethesda-based company’s portfolio.

Photo credits: Marriott International Inc.