Mark Daday, Landmark's president, declined to say what the company paid for the land, but tells GlobeSt.com the all-in cost of the development is approximately $16 million. His company owns about one million sf of office and retail space in the area, and he says doctors in the company's office buildings expressed interest in a facility devoted exclusively to medical office tenants. "It doesn't always make sense to mix them in with corporate tenants," he says. "We're in negotiations with a first batch of prospects for an aggregate of up to about 40,000 sf." He expects the building to reach completion in June 2007.
The doctors also told Daday they would like to have some ownership. As a result, Landmark is offering tenants limited-partnership equity investments in the building. "It helps us," he reasons, "since we don't have to raise as much money, and it gives them a modicum of control, plus an investment." These are not office condos. "Investor-occupants pay rent just like any tenant would." The rent rate is about $21 per sf or $22 per sf, "but there will be a $20-per-sf buildout, because these tenants have some requirements that are different from other office tenants."
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