Case Study

1812 North Moore Street

Opportunity
Monday Properties acquired 1812 North Moore Street from Westfield Realty in January 2006, recognizing the development potential of the parcel based on its in-depth knowledge of the Rosslyn, VA submarket. This property is directly adjacent to the Rosslyn Metro Station, the second most utilized station in the entire Washington, DC metro system, and positioned within the Rosslyn two-block boundary that permits rezoning up to a height of 490 feet and a buildable floor area ratio (FAR) of 10.0 (versus 158 feet and a 3.8 FAR currently allowed). In utilizing its strategic long term relationships within the submarket, Monday was able to identify and successfully negotiate the purchase of additional air rights from Virginia Electric and Power Company (VEPCO) resulting in an overall 60,000 square foot parcel or 600,000 square foot developable site.
Transaction
Monday Properties purchased 1812 North Moore Street from Westfield Realty in January 2006 for $31,500,000 ($101 PSF) and subsequently purchased the VEPCO air rights in October 2006 for $7.4M ($27 PSF). These deals were funded all-cash and created a combined average land price of $67 PSF.
Results
Subsequent to the assemblage of the land and during the Arlington County entitlement process, the Monday/Lehman joint venture (Joint Venture) identified this asset as a critical component to the overall Rosslyn redevelopment story and agreed to purchase the property outright from its sole owner, Monday Properties. As a result, the Joint Venture purchased 1812 North Moore Street in October 2007 for $69.5 million ($120 PSF). This deal was capitalized with $50 million of portfolio debt and $19.5 million of equity. Monday, as seller, realized an overall IRR of 41.69% and provided the joint-venture, as purchaser, with a key development parcel as part of its strategic holdings. In December 2007, the County approved 1812 North Moore Street as a 580,759 GSF, thirty-story office building to be constructed to a LEED-Platinum level, the highest certification offered by the U.S. Green Building Council’s Leadership in Energy and Environmental Design program and the first of its kind for the Commonwealth of Virginia. The approval was a strong testament to Monday’s ability to successfully navigate the significant demands placed on developers seeking entitlement for high-profile urban commercial projects. Throughout the next 3 years, Monday Properties advanced the design of the building and procured a Guaranteed Maximum Price with Clark Construction with realized savings of over 22% versus initial projections. Monday Properties broke ground in November 2010 and completed construction on time within 40 months. Monday Properties anticipates the initial leasing of 1812 North Moore Street will result in a building net operating income of $26 million.
Location
Rosslyn, VA
Property Type
Commercial
Square Footage
580,759 GSF
Purchase Date
January 2006

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