Carrying the respective addresses of 6700 and 6710 Rockledge Dr., Capital Gateway II and IV boasts a coveted location right off Interstate 270 in the Rock Spring Park office development. Completed in 1993 by IBM and Park Tower Realty as a home for IBM, the two-building property has a current assessed value of approximately $124 million.
Today, IBM continues to call Capital Gateway IV home, occupying the entire structure under a lease that is scheduled to expire at the end of 2011. The tenant roster at Capital Gateway II is much longer by comparison, and includes, to name a few, the National Institutes of Health, which occupies about 120,000 sf, IMAKE Software and Services Inc. and real estate services firm Transwestern Commercial Services.
For Hines, the time was just right to sell the buildings. "We acquired the assets in 2001 with the expectation of completing the releasing of 6700 Rockledge Dr. by year-end 2005," Michael Allen, Hines vice president of acquisitions & development, explains. "Having done so a year early, we felt it was an opportune time to sell, particularly given the capital markets appetite for stabilized, well located, class A product in the Washington Region."
And considering the Greater Washington, DC area's status as one of the top office market's in the country, competition among investors to acquire the Capital Gateway complex was steep. "Capital Gateway was a unique offering, from the high quality of the buildings themselves, to the outstanding location and strong tenancy, and we received strong interest," says CB Richard Ellis senior vice president John Norjen, who along with colleague William Prutting Jr. represented the seller.
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