Commercial real estate round up, 11/1/10
- November 1, 2010
Good news continues for the Washington D.C. market with demand reaching a 10-year high and one triple net lease fetching $932 per square foot. This and other real estate news from around the state:
WASHINGTON, D.C. — A urban triple net lease for a CVS in the Adams Morgan neighborhood sold for $11.7 million, or $932 per square foot. Reston-based Calkain Cos. handled the sale. The local buyer of the investment property, where CVS holds a long-term lease, was BGG Associates-DC LLC and BGG Associates-DCGL, LLC. According to Calkain, the seller received multiple offers, and went with a buyer willing to pay 98 percent of the asking price.
WASHINGTON, D.C. — Demand for office space reached a 10-year high at the end of the third quarter, according to a report from Cassidy Turley. More than 1.3 million square feet of net absorption dropped the vacancy rate by 0.9 percent to 10.8 percent. That’s just a tad above the same time a year ago. One transaction accounted for 70 percent of the absorption, with the Securities and Exchange Commission taking a 900,000-square-foot lease at Constitution Center. Through the first three quarters, net leasing totaled 3.3 million square feet, compared with 147,000 square feet of positive absorption in all of 2009.
GAINESVILLE — The Marque at Heritage Hunt, a multi-family complex built in 2006, received a $31.2 million first mortgage loan from New York-based Pembrook Capital Management LLC to refinance the discounted payoff of a current loan. The 200-unit property, 35 miles southwest of Washington, D.C., offers many amenities and is 70 percent occupied. Pembrook, a commercial real estate investment management company, has made about $320 million of loans and investments since its founding in 2007.
CHESAPEAKE — A developer has purchased land for an industrial park near the Military Highway corridor. Michael Drive LLC bought 54 acres near the Gilmerton Bridge in Deep Creek for $2.3 million with plans to turn the site into the Gilmerton Industrial Park. Parcels ranging in size from 2 to 37 acres will be offered for sale by the second quarter of 2011. C B Richard Ellis will market the project.
NORFOLK — The vacant Granby Tower site downtown is about to get a $1.2 million facelift. The federal government recently took ownership of the site, which was supposed to be the home of a 34-story luxury condo development, a plan that didn’t materialize due to a lack of financing. The government plans to build an annex to the Walter E. Hoffman U. S. Courthouse. Planning may take years, so in the meantime, it has hired a local contractor to remove construction debris and turn the site into an urban park.
HENRICO COUNTY — Med Atlantic, Inc. has leased 10,724 square feet in Hanover MOB 1 for use as a medical office. Thalhimer handled lease negotiations.
CHESTERFIELD COUNTY — First Potomac Realty Trust renewed two leases totaling 273,400 square feet at the company’s River Bend Center in Chester. Redemtech Inc. renewed its 115,000 square-foot lease through 2016. In addition, a Fortune 500 financial services company renewed a 158,400-square-foot lease through 2018.