GSA Picks Site for new FBI Complex in VA

The General Services Administration (GSA) Mid-Atlantic Region announced that it has selected and purchased approximately 60 acres of land for the site of the FBI's Central Records Complex (CRC) in Winchester/Frederick County, Virginia. The federal agency paid $4.75 million for a site in Frederick County, Virginia off U.S. 50 where it plans to build a $109 million facility where more than 440 employees would work, according to a Virginia Business report. The purchase and development plan is part of the agency's strategy to condense the bureau's vast records repositories into one site.

"The centralization of FBI records consolidates records from 265 current locations into a single facility," said Joanna Rosato, Regional Commissioner of GSA's Public Buildings Service in the Mid-Atlantic Region, in a press release. "The CRC will provide the infrastructure and technology for the FBI to continue to digitize records on demand."

The site at 2117 Millwood Pike, known as Arcadia, will support construction of approximately 256,000 Gross Square Feet facility, including a secure perimeter, visitor screening center and truck screening facility, guard booth, and surface parking lot. The new facility will be National Archives and Records Administration-compliant secured, with environmentally conditioned, fire-protected space that will provide records storage combined with material handling and operational support areas. The FBI said it digitizes at least 20 million pages per year to make them searchable and CRC will house both infrastructure and technology for the bureau to carry out the digitization effort.

For more news and information visit Blumberg Partners.

GSA Proposed Budget Seeks $1.5B for Real Estate Investments

The U.S. General Services Administration (GSA) released its 2017 Annual Budget Request, which includes $1.5 billion in investments to federal infrastructure and modernizing the federal government's most at-risk legacy IT systems. The GSA announced last month that the budget request would include $1.4 billion in Department of Justice and GSA funding for the FBI headquarters, but the newly released budget reveals more specific real estate investment plans. GSA's request includes:

— $759 million to support consolidation of FBI Headquarters function into a single, secure campus supporting the FBI's national security and law enforcement mission
— $267 million to deliver a new headquarters for the Federal Emergency Management Agency (FEMA)
— $248 million to support the second and final phase of the Calexico West Land Port of Entry modernization and improvement project
— $81 million for the renovation of the 985 Michigan Avenue Federal Office Building (aka Patrick V. McNamara Federal Building) in Detroit, MI

"The President's budget includes investments necessary to further strengthen our nation's real estate portfolio while promoting development in communities across the country," said GSA Administrator Roth. "GSA will also be able to more effectively bring federal IT systems into the 21st century. Once enacted, GSA will be positioned to better provide the services and solutions that allow the government to more effectively tackle our shared challenges."

To read the full Congressional Justification for the 2017 Annual Budget Request, click here. For more news and information visit Blumberg Partners.

First Potomac Sells Cedar Hill I and III for $27.3M

Bethesda, MD-based First Potomac Realty Trust announced this week that it had sold two office buildings in Tyson's Corner, Virginia for gross proceeds of $27.3 million. Cedar Hill I and III were first acquired by First Potomac in 2011 from PNC Realty Investors, Inc. for $22.8 million; the company stated in a press release that proceeds from the sale will be utilized to fund the previously announced redemption of $2.2 million Series A preferred shares.

"As we continue to execute on phase one of our strategic plan to improve our portfolio and strengthen our balance sheet, the sale of Cedar Hill I and III, and the redemption of a portion of our preferred shares, reinforces our effort to create substantial value for our shareholders," said Robert Milkovich, CEO of First Potomac Realty Trust. Jones Lang LaSalle represented First Potomac in the sale of Cedar Hill I & III.

Cedar Hill I, located at 2222 Gallows Road, and Cedar Hill III, located at 2216 Gallows Road, are 100% leased primarily to the United States State Department's GSA through 2020 and 2019 respectively. The two three-story office buildings total 102,632 square feet and were constructed in the late 1980s. For more news and information visit Blumberg Partners.

Renard and Related Unveil Plans for FBI HQ

Renard Development Company and Related Cos. have revealed their plans for a site at the Greenbelt Metro in an effort to secure the FBI, which announced that it is considering moving its headquarters from the District to either Greenbelt, Landover, or Springfield. Greenbelt Station was recently shortlisted by the General Services Administration for the FBI headquarters solicitation, according to a GlobeSt.com report, and the partnership is hoping to set itself apart from its rivals in Landover and Springfield by releasing its plans prior to selection.

The 78-acre site near Interstates 95 and 495 and exit 24 in Greenbelt, Maryland would include a secured campus for the FBI as well as a 300-room hotel and conference center and additional office, residential and retail uses. Renard's design would pair a secure headquarters complex of five buildings with a mixed-use development of five additional buildings accessible to the public, all served by the Greenbelt Metro station, according to a Washington Business Journal article. The FBI employees would have their own parking garage, complete with solar panels on the roof, while current metro parking and Kiss and Ride facilities would be replaced with a parking complex next to the Metro entrance.

For more news and information visit Blumberg Capital Partners.

GSA Releases Renderings for DC Homeland Security HQ

The U.S. General Services Administration (GSA) announced this week that it had begun its search for contractors to build a new Department of Homeland Security headquarters and released renderings of the new project for review. The GSA posted a request for qualifications Monday to FedBizOpps.gov outlining plans to renovate the Center Building on the St. Elizabeths campus on Martin Luther King Jr. Avenue in Southeast D.C., a design-build project estimated to cost between $100 million and $140 million, according to a Washington Business Journal article. GSA expects to award the contract in August, with a completion date set for July 1, 2017. The cost of the renovation of the building that dates back to the late 1800s has been pegged at between $100 million to $140 million, reports GlobeSt.com.

St. Elizabeths was established by Congress in 1855 as a government hospital, divided into two campuses. The West Campus is presently owned by the federal government and is under the custody and control of GSA. The development of St. Elizabeths is the consolidation site for the Department of Homeland Security, with Congress having already approved $155 million for the GSA to bring more than 14,000 employees to the campus. DHS's current facilities are spread among more than 40 buildings in the Washington, DC area; DHS's new headquarters will allow for more efficient incident management response and command-and-control operations. The first phase of the consolidation – the new Coast Guard headquarters – was completed and occupied by the Coast Guard last year, according to a Federal Times report.

For more news and information visit Blumberg Capital Partners.

Trump Giving DC's Post Office Tower $200M Makeover

The Trump Organization will take possession of the landmark 1899 post office tower on Pennsylvania Avenue in Washington, DC this Saturday, beginning a 60-year lease from the General Services Administration that will see Trump invest $200 million to turn the property into a luxury hotel. Donald J. Trump, president and chairman of The Trump Organization, first unveiled plans for the redevelopment last September, and plans to have the project completed in time for the 2017 presidential inaugural parade. The main building will have 271 rooms — prices to be determined — including two "presidential" suites in the former postmaster general's office, 3,600 and 5,000 square feet in size, according to a New York Times article.

"Trump International Hotel, Washington D.C. will be, when completed, one of the finest hotels anywhere in the world. The building itself, which is totally irreplaceable, is going to be brought back to far beyond its original grandeur. People of this country will be particularly proud of the new ballroom – it will be large and magnificent. With carefully articulated luxury features and amenities, an unrivaled location on 'America's Main Street' and iconic architectural character, it will be unlike any other hotel in the market today. It will be a building of which our whole nation will be very proud!" declared Donald J. Trump.

For more news and information visit Blumberg Capital Partners.

GSA Making Changes, Dropping Need for Warehousing

Tom Sharpe, Commissioner of GSA Federal Acquisition Service, posted on the agency's website that the GSA is preparing to make important changes to their business model, which could see it exit millions of square feet of warehouse distribution space. The GSA is already moving forward with the implementation of a new vision for the Federal Acquisition Service (FAS), which includes a new business model for their supply business that would allow vendors to directly support GSA customers. This transformation would sidestep the GSA's existing wholesale supply business, which relies on warehouse distribution centers and retail stores around the world that stocks inventory from those warehouses.

"This model is costly, cumbersome and no longer the most efficient or effective approach to supporting our federal partners," wrote Mr. Sharpe. "This is the right time to implement these changes to GSA's supply program and they are one part of a new vision we are outlining for FAS over the next year. By working closely with our vendors, we have an opportunity to support our federal partners with the value and services they need, through a system that is suited to today's marketplace."

While it is not clear just how much of the federal government's warehouse inventory is used by the FAS, the GSA controls a total inventory of 25.56 million rentable square feet, according to a CoStar report. It leases 16.1 million square feet and owns the remainder.

For more news and information visit Blumberg Capital Partners.

Invesco Acquires SSF Logistics Center

Invesco Real Estate has purchased the SSF Logistics Center in South San Francisco from a partnership of New York City-based Angelo Gordon & Co., Lafayette-based Orchard Partners and Chicago-based Centrum Properties. The property was brought to the market for sale in May, and brokered by Cassidy Turley/BT Commercial. While the terms of the deal and final sale price were not disclosed, industry sources say the property would have sold for around $120 million, according to a report from The Registry.

"The team of Orchard, Cassidy Turley and Centrum brought to bear decades of industrial investment, leasing, entitlement, construction and management expertise, as well as deep locale market relationships and perspectives, on this project. Following a yearlong re-entitlement and redesign for a major logistics company, we are thrilled to consummate this sale to Invesco," said Steve White, a managing director with Angelo Gordon in a prepared statement.

"SSF Logistics Center has been thoughtfully conceived, and on a fully renovated basis has been transformed to a state-of-the-art logistics facility. This is something rarely found on the Peninsula," says Tyler Higgins, managing partner of Orchard Partners.

The SSF Logistics Center has two separate buildings covering 26 acres located along the west side of 101 and north of US 380 at 1070 San Mateo Avenue. The 453,076 square-foot warehouse building is 93% leased to Federal Express with a recently signed lease that expires in 15 years with two five-year extension options, with the General Services Administration taking up the remainder of the building for the Drug Enforcement Administration. The second 9,240 square foot building offers retail/cafe/business services space and is currently under construction, with an expected delivery date sometime this December.

For more news and information visit Blumberg Capital Partners.

New Leasing Opportunities at One World Trade Center

The Durst Organization, a joint venture partner with the Port Authority of New York and New Jersey overseeing construction, leasing, and management of One World Trade Center, announced this week that it will lease 94,000 square feet of the 3-million-square-foot tower for smaller office tenants. Two floors of the iconic tower — located on the 45th and 46th floors — are being set aside as part of a prebuilt/build-to-suit program that offers spaces subdivided into smaller increments ranging between 2,000 and 20,000 square feet each.

"There is demand, from across the globe, from large multinational companies to establish a presence at One World Trade Center," said Eric Engelhardt, Vice President, Director of Leasing at One WTC for The Durst Organization, in a press release. "These potential users need a New York flagship at a building with a globally recognized address that speaks to their international reach and prestige."

The build-to-suit initiative offers customized construction and finishes to meet specific tenant configurations. Ownership will begin construction of the prebuilt spaces in early 2014. The spaces will be available for occupancy January 1, 2015. Cushman & Wakefield, in conjunction with The Durst Organization, is conducting the global marketing campaign in support of the building. The Cushman & Wakefield team is led by executive vice chairman Tara Stacom.

One World Trade Center is currently around 55% leased, with major tenants including Condé Nast, Beijing Vantone Real Estate and the U.S. General Services Administration. Legends Hospitality Group will operate the building's public observation deck, set to open in 2015.

For more news and information visit Blumberg Capital Partners.

Titanium Secures $50M Loan to Expand Federal Government Portfolio

Colliers International's Government Solutions Group announced that it had facilitated the closing of a $50 million portfolio loan for Titanium Real Estate Advisors. The 14 property portfolio covers 375,726 square feet of space leased in its entirety to the Federal Government. Todd Taylor, Managing Director of Capital Markets at Colliers Government Solutions, placed the loan.

"Todd and his team secured an outstanding loan for Titanium on a diverse portfolio of General Services Administration (GSA) assets," said Kris Jankowski, Vice President at Titanium. "By facilitating this loan in the current low-interest environment, Colliers is playing an integral role in Titanium's ongoing strategy to expand its GSA portfolio."

Titanium Real Estate Advisors is a division of Titanium Asset Management, a professional asset manager to various Taft-Hartley pension plans. The portfolio includes properties in Alabama, Kentucky, Louisiana, North Carolina, Indiana, Michigan, Wisconsin, Arizona, Texas, Montana and Washington. Colliers International is the property manager for five of the assets.

For more news and information visit Blumberg Capital Partners.

SF Financial District Building Gets $126M Loan via Starwood

Starwood Property Trust announced today that it had originated a $126 million first mortgage loan and mezzanine loan for 100 Montgomery in San Francisco on behalf of Blackstone Real Estate Partners VII. Blackstone Group agreed to buy a 25-story building in downtown San Francisco for $165 million last month from a joint venture of Houston-based Hines and Sterling American Property Inc., which previously purchased the tower in January 2006 for $67.5 million from Equities Office Properties Trust. Starwood has said that it will sell the first mortgage "in the near term" to increase its investment returns. The total financing will have an initial funding of $115.5 million with $10.5 million of future funding for tenant improvements and leasing commissions.

"We are excited to complete another complex financing transaction with Blackstone," said Boyd Fellows, President and Director of Starwood Property Trust. "Similar to the $61 million Glendale transaction we announced earlier this quarter, we funded the entire capital stack with a flexible structure which meets Blackstone's exact financing needs. Our ability to act as a 'one stop financing solution' for borrowers looking to finance large transitional assets is a significant strategic advantage."

As of last month, the office building was 84% occupied, with the U.S. General Services Administration as its largest tenant, according to the people. Situated on the corner of Sutter and Montgomery Streets in the Financial District, the building offers more than 420,000 square feet of space including retail storefronts. 100 Montgomery, also known as the Equitable Life Building, has undergone $54 million in capital improvements redesigned by Robert A.M. Stern Architects, including a comprehensive renovation in 2009 that added a new glass facade and lobby.

For more news and information visit Blumberg Capital Partners.

Silver Spring Office Building Sold for $21.3M

11800 Tech Road in Silver Spring, MD traded hands this month as Corporate Office Properties Trust (COPT), an office REIT, sold the property to a joint venture between Finmarc Management and the Goldstar Group, which previously owned the building. HFF marketed the property exclusively on behalf of the seller and closed the transaction free and clear of debt. COPT purchased the property in the fall of 2002 from the Goldstar Group for $27.3 million as its first building buy in Montgomery County according to a CoStar report.

The 228,179-square-foot flex office building was built in 1967 and renovated in 1997. The property was 82.5% leased at the time of sale to six tenants including the General Services Administration, Comcast Cable, Kaiser Foundation Health, BioCore Medical and Holy Cross Hospital. 11800 Tech Road is located in the North Silver Spring/Route 29 submarket of Silver Spring approximately 14 miles north of Washington, D.C.

For more news and information visit Blumberg Capital Partners.

Cedar Bend Professional Center in Austin Breaks Ground

Live Oak-Gottesman broke ground recently on a new 70,000 square foot medical office building in Austin according to an Austin Business Journal article. Live Oak-Gottesman is developing the property along with Rooker & Associates, which will also serve as the general contractor on the project, which is expected to be completed by the third quarter of next year.

Adjacent to St. David's North Austin Medical Center in the heart of North Austin's medical center corridor, Cedar Bend Professional Center offers access to the hospital, high parking ratios with covered physician parking. Cedar Bend is located less than two miles from the Domain offering a high volume of restaurants and retailer options. The property is 90% pre-leased to tenants including the General Services Administration, Capital Otolaryngology, Head & Neck Surgeons, Nasal & Sinus Center of Austin, Renu Austin and Snoring Austin.

For more news and information visit Blumberg Capital Partners.

Crystal City Buildings Get $118M Loan

Lowe Enterprises, owner of Century Center I and II in Crystal City, VA just minutes over the bridge from Washington, DC, received a $118 million refinance loan on the properties arranged by Holliday Fenoglio Fowler (HFF) according to a Washington Business Journal article. HFF secured the five-year, adjustable-rate loan through Wells Fargo Bank, the proceeds of which were used to refinance an existing loan and fund future leasing and capital expenditures.

"Century Center's renovation and repositioning, which included creating a retail promenade extending down Crystal Drive, demonstrates Lowe's commitment to the property and the Crystal City submarket," said Cary Abod, managing director with HFF.

Century Center I and II covers 560,207 square feet of office space, 65,797 square feet of retail space and a three-level, 1,494-space underground parking garage. Lowe originally acquired the property on behalf of a pension fund client in 2004 and recently completed a $30 million renovation to improve building systems and curb appeal. Major tenants include Raytheon, GSA, and Northrop Grumman.

For more news and information visit Blumberg Capital Partners.

Children's Hospital Renews, Expands Lease in Philadelphia

Behringer Harvard announced this month that The Children's Hospital of Philadelphia has renewed its current lease at the Wanamaker Building through June 2027 and expanded their leased space to exceed 250,000 square feet in the historic building. Children's Hospital first moved in to the space in 2005. In 2007, Behringer Harvard REIT I, Inc. acquired a majority interest in the building; Amerimar Enterprises, Inc. is one of the ownership partners and also serves as the managing agent for the property.

"The Children's Hospital of Philadelphia has had a distinguished presence in The Wanamaker Building since 2005, and we're pleased they will be with us for many years to come," said Ms. Deidre Hardister, Vice President of Asset Management for Behringer Harvard. "We will continue to provide them with the exceptional service that is a hallmark of the Wanamaker experience."

Completed in stages from 1902-1910, the Wanamaker Building at 13th Street and Market Street in Philadelphia served as the flagship of the John Wanamaker department store empire for decades and was later converted to offices in the 1980s as the need for urban department stores declined. The Wanamaker Building is home to the world's largest operational pipe organ, which is still played daily. Major tenants include U.S. General Services Administration, U.S. Army Corps of Engineers, U.S. Department of Housing and Urban Development, Hay Group, The Weightman Group and McGettigan Corporate Planning.

For more news and information visit Blumberg Capital Partners.

GSA Leases New Office Space in Phoenix

The U.S. General Service Administration (GSA) has signed a 10-year lease for 29,500 square feet of office space in Phoenix, AZ according to the Phoenix Business Journal. The GSA signed the deal on behalf of the Military Entrance Processing Station which will occupy the space at 2800 N. Central Ave. in mid-town Phoenix.

"We've really seen a significant activity increase," said Belinda Dabliz, vice president of leasing for Gaedeke Group, the building's landlord. "We are working four additional large deals that would take occupancy to 87%." New tenants to the building also include BCD Travel USA, Secore & Niedzialek PC, and The Never Again Foundation. Transwestern Phoenix handled the deal on behalf of Gaedeke.

For more news and information visit Blumberg Capital Partners.

Keystone Crossings Office-Retail Complex Sold for $15M

PWA Real Estate LLC has entered into an agreement to purchase 8480-8520 Keystone Crossings, a three building office and retail property totaling 117,276 square feet in Indianapolis, Indiana for $15,500,000 according to IBJ.com. PWA acquired the properties from BPG Properties, Ltd. which originally purchased one of the buildings in the complex in 2005 as part of a six building portfolio transaction, with two buildings later developed as part of build-to-suit lease transactions for Fidelity Brokerage Services and Jared the Galleria of Jewelry. BPG was represented in the negotiations by Rebecca Wells, a senior vice president of Cassidy Turley's Indianapolis office.

"We were pleased to announce the sale of 8480-8530 Keystone Crossing," commented Christopher J. Locatell, vice president of BPG who is in charge of the firm's disposition activity. "Despite the challenging market conditions, the asset's strong occupancy, credit tenancy and diverse tenant mix attracted numerous bidders." The complex is currently 88% occupied by tenants including the General Casualty Company, GSA/SBA, 20/20 Institute and M/I Homes with no lease expirations during the next three years.

For more news and information visit Blumberg Capital Partners.

GSA Signs 523,500 SF DIA Lease in Metro DC

Cassidy Turley announced that the U.S. General Services Administration (GSA) has awarded a 523,482 square foot lease for the Defense Intelligence Agency (DIA) to occupy Patriots Park in Reston, Virginia just outside of DC. Situated in two towers located at 12310 Sunrise Valley Drive, a brief drive out Interstate 66 from DC proper, DIA will enter into a 20-year lease at the property located near the Reston Town Center. The complex is currently undergoing a redevelopment by Boston Properties to meet the Department of Defense’s anti-terrorism/force protections standards. The pricing of the deal was not disclosed.

"Patriots Park is the logical choice for the DIA’s new facility," said Darian LeBlanc, senior managing director of government services for Cassidy Turley, which represented the GSA in the deal. "This selection allows them to consolidate multiple locations into a highly secure campus environment, central to all of Reston’s fantastic amenities and Metro’s Silver Line." DIA is headquartered at the Pentagon in Washington, D.C., with major operational activities at the Defense Intelligence Analysis Center (DIAC), Washington, D.C., the National Center for Medical Intelligence (NCMI), Frederick, Maryland, and the Missile and Space Intelligence Center (MSIC), Huntsville, Alabama.

For more news and information visit Blumberg Capital Partners.