Commercial real estate roundup, 4/11/11
- April 11, 2011
CityCenterDC, a massive mixed-use project, breaks ground thanks to equity financing from a Qatar-based real estate investment entity. Meanwhile in Prince George County, a speculative building near the new Rolls-Royce aerospace facility fetches nearly $5 million. This and other real estate news from around the state:
PRINCE GEORGE COUNTY — The Hollingsworth Cos. sold a 130,560-square-foot speculative building at SouthPoint Business Park for $4.9 million to Cabinets To Go. Hollingsworth, a Clinton, Tenn.-based real estate development company has developed more than one million square feet at SouthPoint, located down the road from Crosspointe Centre, the home of Roll-Royce’s first aerospace manufacturing facility in North America. Cabinets to Go will move a warehousing operation from Colonial Heights to Prince George. The facility is located just off of Interstate 295.
WASHINGTON, D. C. — Hines-Archstone has broken ground on the $700 million CityCentre project. The developers announced that Qatari Diar Real Estate Investment Co., the real estate investment arm of the Qatari Investment Authority, is providing all of the equity financing for the massive, 10-acre project. The project, planned at the site of the city’s former convention center for nearly a decade, will include 520,000 square feet of office in the first phase, along with 185,000 square feet of retail. The retail will be located on the ground floor of six buildings, offering 458 apartments and 216 condominiums. CityCentre represents the first U.S. investment for the Emirate’s sovereign wealth fund.
HERNDON — Rockville-based Washington Real Estate Investment Trust announced the sale of Dulles Station West, Phase I, for $58.8 million to an undisclosed buyer. The 180,000-square-foot office property is fully leased. Clients include IBM and National Student Clearinghouse. WRIT completed construction on the project in 2007. Phase II, not included as part of the transaction, is zoned for a 340,000 square-foot office building.
STAFFORD COUNTY — CSCQ-VA purchased an 8,000 square-foot industrial building from seller Tractors & Trucks for $1.1 million. The buyer plans to use the 2.1-acre site for the expansion of its trucking business. Cushman & Wakefield | Thalhimer handled sale negotiations.
RESTON — CB Richard Ellis has been retained as the exclusive listing agent for Reston Corner I and II. The two-building, Class A property of 209,567 square feet is located on Sunrise Valley Drive. Garrison Investment Group acquired the properties last year from Penzance through foreclosure. A refinancing enabled the company to move the assets out of foreclosure. Garrison plans to move ahead with renovations to the buildings, built in the 1980s.
CHARLOTTESVILLE — Regal Cinemas has signed a lease for 64,370 square feet at the Shops at Stonefield. The new, 2 million square-foot lifestyle center is under development by Edens & Avant. Regal will be an anchor tenant for the center, set to open in 2012. Cushman & Wakefield | Thalhimer represented Regal Cinemas in lease negotiations.
RICHMOND — Morgan Stanley Smith Barney Financing LLC has leased 22,773 square feet at Riverfront Plaza. Cushman & Wakefield | handled lease negotiations.
VIRGINIA BEACH — Construction is under way on two new oceanfront developments. Gold Key/PHR Hotels and Resorts of Virginia Beach plans a mixed-use development, 31 Ocean, in the Laskin Road Gateway project. It’s also building a 200-room addition to an existing property, the Ocean Beach Club & Resort. Both projects are supposed to be completed by 2012.
NORFOLK — Total Distribution leased 110,000 square feet of industrial space on Village Avenue. S. L. Nusbaum Realty Co. represented the landlord.
NEWPORT NEWS — Roberts Oxygen has renewed an 11,700-square-foot lease on Thimble Shoals Boulevard. Cushman & Wakefield | Thalhimer handled lease negotiations.
IN THE HEADLINES — REITS outperformed broader equity market during the first quarter
The U. S. REIT industry saw a 7.5 percent return during the first quarter, compared to a 5.9 percent return for Standard & Poor’s 500. Those are the latest figures from NAREIT (National Association of Real Estate Investment Trusts). Its first-quarter report, which covers 120 investment trusts with a market capitalization of more than $417 billion, showed that REITs were up 205 percent since their market trough in March 2009. Overall, office and industrial REITs showed the strongest gains.