Crown Center

Springfield, Virginia

Edgemoor was the development manager for this 13 acre, 230,246 SF project and was responsible for the property entitlements, design, financing, construction, marketing, lease-up and initial building operations.

Principals at Edgemoor, operating under the name Clark Real Estate Advisors, located the property, entered into a purchase agreement for the property, and master planned the development from existing fuel storage tanks to a Flex Office Building development. Covering 13 acres, Crown Center includes two office/flex buildings totaling 230,246 SF (Building A is 124,438 SF and Building B is 105,808 SF), of which 198,230 SF is 1st floor office/flex space with loading access and 32,016 SF is 2nd story office space. Both buildings are served by a class A common lobby with a full size elevator and three stairs.
Project Type
Office
Project Details
Cost - $29 Million
Size - 230,246 Square Feet
Project Newsletter
Awards

Brownfield Redevelopment

Edgemoor's affiliate, Clark Real Estate Advisors, identified a property that was coming to market in an area to likely be positively impacted by the Base Realignment and Closure commission's actions to consolidate many military and government programs onto the Fort Belvoir installation located outside Washington, D.C. The property, at the time of land acquisition, was a petroleum storage tank facility and it had several documented, and many undocumented, contaminated ground and groundwater sites within its boundaries. Many were subject to on-going monitoring and reporting under the guidance of the state environmental resources protection department. The removal of the existing tanks would impact that monitoring and the sale of property bought greater scrutiny of the contaminated sites and thus the need to establish a environmental management plan to address the known and unknown issues before a closing on the site could occur.

Solution

Edgemoor negotiated a purchase and sale agreement that allowed for the tank removal and associated clean-up activities and issuance of "no-further-action required" letters relative to contaminated areas while entitlements for the land were obtained. Protections for liabilities occurring after closing were also established in the transaction documents. Edgemoor worked closely with the seller and the regulatory authorities to ensure there was a well defined plan and schedule to receive the No-Further-Action letters in time to close on the project.

1031 Exchange

Edgemoor brought in an equity partner to help finance the transaction and the partnership agreement included prescribed buy-out provisions that would allow Edgemoor to exit the project. The sale price for Edgemoor's interest was tied to the leasing success of the project. Edgemoor's equity partner decided to include the project in a 1031 exchange program and the timing to achieve the sale of the property to perfect the 1031 exchange substantially reduced the lease-up period for the project.

Solution

Expedited leasing to reach a stabilized position was necessary for both the refinancing from a construction loan and for perfecting the 1031 property exchange. Edgemoor ramped up the leasing effort well before the building was completed and secured leases for two credit-worthy tenants and coordinated the tenant build-out to coincide with base building completion. This allowed both the refinancing to go forward and for the equity partner to structure and effect the 1031 property exchange.

Crown Center Lifecycle

We understand that every client is different and that each project will contain some, if not all, of the Project Lifecycle elements. Crown Center, structured as a Traditional Real Estate Development project, included the following lifecycle elements:

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