WASHINGTON, DC—Skanska USA Commercial Development will start selected demolition for an office at Foggy Bottom for which it signed a ground lease with George Washington University last year.
The 11-story, 250,000-square foot office building will have the address of 2112 Pennsylvania Ave., NW.
It will be another speculative project by Skanska, a company that has taken similar fliers on other office projects in the DC area, most notably 733 10th St., NW, in 2009. The $85 million development traded to Jamestown Properties three years later.
Development costs for the Foggy Bottom office will be approximately $126 million, with the building designed for LEED Gold certification. It is scheduled for delivery in the first quarter of 2018.
It will be a trophy quality building targeted at law firms and other tenants that want this address, Robert Ward, executive vice president and regional manager of Skanska USA Commercial Development, tells GlobeSt.com.
Asking rates are still being determined in conjunction with Cushman & Wakefield, which will be leasing the property. "We do have a range in mind," he says, but declined to provide it.
As for prospective tenants, "we are getting a little bit of interest right now and are in a few discussions," Ward says.
Ward also declined to discuss the financial terms of the ground lease citing contract confidentiality. A statement provided by GW's treasurer, Lou Katz, hints obliquely at the revenue stream it will deliver.
"We look forward to Skanska's completion of this project, which will not only enhance the Pennsylvania Avenue edge of our campus, but will also generate revenue for GW under our ground lease that we will use to support our academic and research missions," he said.
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