This article is from the Australian Property Journal archive
DB RREEF Trust has exercised its put and call option in a joint venture with CalPERS in the United States over four development land sites for $US13.5 million ($A18 million).
The joint venture will undertake a development in the Washington D.C./Northern Virginia office market on the Dulles Town Crossing site.
The 14-acre site is located in Sterling, Virginia, at the northeast corner of Atlantic Boulevard and Woodland Road, and is part of Loudoun County. The property is approximately one-half mile south of the 1.4 million sq ft regional mall – Dulles Town Centre and 5.7 miles from Washington Dulles International Airport.
The development will comprise approximately 220,000 sq ft Class A suburban office development over two four level office buildings with a one acre centre landscaped courtyard to connect the two buildings.
The property will accommodate 879 surface parking spaces, or a ratio of 4.0 spaces per 1,000 rentable sq ft.
The development is expected to cost $US52.0 million (A$70.0 million), with an expected yield on the cost of the development of approximately 8%.
The project is expected to receive local authority approval before the end of the year, with construction scheduled for completion in the first half of 2008.
Meanwhile, the joint venture has yet to unveil plans for the three remaining sites at the 10.7 acre site in Beaumeade, Ashburn in Virginia.
In Texas, the joint venture has a 13.5 acre site in Plano Parkway, Plano and 25.6 acre site in Garland Jupiter, Garland.
DRT first formed a joint venture with CalPERS in September 2004 and exercised its first put and call option over a site in Medley, Florida in November last year.
The $US17.0 million project is due for completion in December 2006.
This development will deliver approximately 268,120 sq ft of industrial distribution space. While the development is in its early stages of construction, leasing is progressing well with approximately 35% of the space being pre-committed.
By Adam Parsons
