Saturday, January 13, 2007

Corporate Executive Board HQ Near DC Hits Market

CoStar Web Site - January 11, 2007:

The developers of Waterview, the posh, 633,908-square-foot trophy office building going up just across from Washington, DC in Rosslyn, aren't even bothering to wait until construction is completed before putting it up for sale.

With a 20-year prelease to a top-credit tenant, the Corporate Executive Board, and the building scheduled to deliver this summer, the 24-story tower is expected to command a price in the neighborhood of $425 million, according to the Cassidy & Pinkard Colliers, the broker tapped to bring the asset to market.

Waterview’s development team hoping to cash in on the prized asset includes The JBG Companies, CIM Group and Brookfield Properties. The project development cost is reported to be approximately $250 million.

While the brochure may talk about the refined design by architect James Ingo Freed of Pei Cobb Freed & Partners, make no mistake, it's the 20-year lease with annual escalations signed two years ago and already considered $7 below market that is expected to have buyers buzzing.

With a market capitalization of $3.4 billion and generating an annual operating cash flow of more than $142 million, The Corporate Executive Board is considered one of the top credit tenants in the market.

The Waterview complex includes a second tower that will house a new Hotel Palomar by Kimpton, a luxury, boutique hotel featuring 154 rooms and a high-end restaurant. The hotel is not part of the offering.

According to Cassidy & Pinkard, offers are expected the first week of February with a projected closing date at substantial completion in August 2007. Pricing is expected in the $425 million range, or a cool $670 per square foot. Sphere: Related Content

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