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Capitol Hill hits a new 322,000 sq.ft. spec |
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Thursday, 21 September 2006 |
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WASHINGTON, DC- Brookfield Properties and ING Clarion set to begin construction on a Capitol Hill office project that will add 322,000 sf of spec office space to the submarket. Sources say the two firms purchased the land earlier this year for roughly $30 million--a price that included not only the raw land, but also demolition, building plans and related infrastructure. Development costs for the 11-story, class A building is roughly $400 per sf. Construction is expected to begin in November, according to Brookfield Properties. Other building features are a rooftop terrace, private fitness facility and on-site management.
Brookfield Properties is the managing member and developer of the 50-50 joint venture with ING Clarion. Upon completion, the building will be managed by Brookfield Properties and leased by Blane T. Dodson and Kerri A. Mulligan with local firm, Cassidy & Pinkard Colliers. In recent years Capitol Hill has seen a spike in development, which has slightly increased the submarket's overall vacancy rate, Tonya Ginter, director of Research for GVA Advantis, tells GlobeSt.com. "There is quite a lot of space that has become or will become available that still has to be leased up," she says. Ginter points out that 77 K St. NE will be competing for tenants against 25 Massachusetts Ave., which delivered earlier this year and is not fully leased, and 20 M St. SE, planned as a May 2007 delivery. She says rental rates are averaging $45 per sf on Capitol Hill.
Edwina Baniqued
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Georgia Real Estate 