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Sunday, 31 March 2002

Mid-Atlantic Regional Digest (4/1/02): FDIC Move Leaves DC Leases Up in the Air

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April 1, 2002

FDIC move leaves DC leases up in the air
Washington Business Journal

WASHINGTON – The Federal Deposit Insurance Corp. decided March 22 to build a 422,000-sf office in Virginia Square, moving 1,100 employees out of four leased office buildings in D.C. The construction of the $111 million, 422,000-sf office building at its Virginia Square campus will take the quasi-government agency until 2006 to finish. All four D.C. leases, totaling almost 600,000 sf, are scheduled to expire in June 2003. FDIC's brokers have said they will ask for three-year lease extensions at three of the agency's four District offices: 801 17th St., 1717 H St., and 1730 Pennsylvania Ave.


USAA departure keeps Reston, Va., market reeling
Washington Business Journal

RESTON, Va. – USAA left 180,000 sf of office space here empty on March 29, completing a move of 500 employees to its regional office in Norfolk. The insurance and financial company had since 1987 run insurance operations in 1900 and 1902 Campus Commons Drive – sister buildings it owns. USAA – which listed its buildings for $26.50 to $27.50/sf – in some respects, has a competitive advantage over the shells that tech companies left behind. USAA's buildings have high visibility signage from the Dulles Toll Road; the space soon will undergo what Sult calls a "face-lift;" and leasing the space would be a direct deal with the landlord.


Liberty won't build Philly tower on spec
Philadelphia Business Journal

PHILADELPHIA – Liberty Property Trust has put off a May groundbreaking on One Pennsylvania Plaza, its office tower in Center City, and will now tentatively start construction in July. The REIT needs an anchor tenant or tenants to commit to the building between now and July to give it, its lenders and investors enough of a comfort level to move forward with the two-phase project. Phase One would be a $350 million, 1.25 million-sf high-rise that will stand 746 feet, the fourth tallest in Center City. The second phase consists of the construction of a second, 250,000-sf office building that will stand 17 stories. Including land costs, Liberty has so far spent $50 million on One Pennsylvania Plaza.


Mack-Cali to build NJ call center for Verizon

HAMILTON TOWNSHIP, N.J. – Mack-Cali Realty Corp. (NYSE:CLI) will develop a 95,000-sf office building at its Horizon Center Business Park for Verizon New Jersey Inc., which has signed a 10-year lease for the entire build-to-suit. Verizon plans to use the single-story building for a large customer call center, once its completed in the fourth quarter of 2002 at a projected cost of about $10.7 million. Upon completion of the new building, Mack-Cali's holding's at Horizon Center Business Park will consist of five office and office/flex buildings totaling 265,030 sf and land to develop an additional 300,000 sf. Jeff Heller of Cushman & Wakefield represented Verizon in the transaction, while Mack-Cali was represented in-house by Diane Chayes.


Building booms again in DC
The Washington Post

WASHINGTON – Karchem Properties breaks ground today at 1717 Rhode Island Ave., its redevelopment of three ragged town houses on Rhode Island Avenue N.W. into a 152,000-sf, Class-A office project. The project, which got financing two weeks ago, is the latest deal in a mini-boom of commercial real estate in the District. In January, Tishman Speyer Properties completed financing for a big office development above the Hecht's building in downtown Washington, called One Metro Center. And earlier this month, law firm Finnegan Henderson Farabow Garrett & Dunner signed the biggest private-sector lease in years to become lead tenant in a new building that Boston Properties will build at 901 New York Ave.


Baltimore office market holds steady
Baltimore Business Journal

BALTIMORE, Md. – The total office vacancy rate for the Baltimore region remains virtually unchanged from fourth quarter 2001 – hovering around 12 percent, according to a first quarter report from MacKenzie Commercial Real Estate Services LLC in Lutherville. That's healthier than many other urban markets, including Atlanta, Boston, Raleigh, N.C., and San Francisco, where office vacancy rates are flirting with the 15 percent mark But with real estate lagging the economy by six to nine months, most local industry experts expect a complete recovery no earlier than the first quarter of next year. However, the downtown office market may be a different story. The office vacancy rate in Baltimore's central business district continues to settle around 8 percent – about the same as the fourth quarter last year, according to MacKenzie.


Westview Mall near Baltimore to become strip center
Baltimore business Journal

BALTIMORE – The Peterson Cos., the owner of the Westview Mall, has invested more than $45 million in the property over the past five years but now plans to rip off the enclosed mall's facade and turn it into a strip center. By tearing tear down the Woodlawn mall's front wall, its remaining shops will have separate outdoor entrances facing Baltimore National Pike. The renovations, which would ultimately eliminate 50,000 sf at the 650,000-sf enclosed mall, could begin in the next two months. The property, developed in 1958 as an open-air strip mall and converted in the 1980's, was only 60 percent occupied when Equitable Life Assurance Co. sold it in 1997 for $24.7 million.


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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  • Syndicate to Realpoint: No
  • Subject: Mid-Atlantic Regional Digest (MADIG)
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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