Skanska is financing the project entirely from its own balance sheet, Rob Ward, EVP of Skanska USA tells GlobeSt.com. It is an entirely spec deal with no preleases signed or in negotiations, he says.
Skanska acquired the development rights from First Congregational United Church of Christ, with whom PN Hoffman had a development agreement. PN Hoffman had demolished the church and begun excavation when it was forced to stop construction. "We have taken over Hoffman's position in the deal, working closely with the church," Ward says. A new church for the congregation is part of the building's design, which will take up two floors. The church will retain ownership of that space; Skanska will be the building's majority owner.
The building, which will also have ground floor retail, will begin redevelopment in Q4 2009 with an expected delivery date in the latter half of 2011. It is being designed to LEED Gold standards – an important consideration for Skanska, Ward said. "The fact that the building had been designed to meet Gold LEED standards was critical to the deal."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
