WASHINGTON, DC-Bristol Group has signed its first two tenants to Union Station Telecom Center, formerly known as the old Woodward & Lothrop warehouse at 131 M St. NE in Washington, DC. Teleglobe has signed a 10-year lease for 126,000 sf, and 360 Networks has inked a 15-year lease for 64,000 sf. Both tenants are broadband service providers.

It is the latest building to go under development for tech tenants in Washington’s resurgent NoMa corridor, a roughly triangular area so-called for being north of Massachusetts Avenue. Qwest, MCI, XM Satellite Radio and others have moved into the area already, but few have paid such a price.

The transactions are valued at more than $64 million, and involve “quadruple net” rents of about $30/sf, says Andrew Pellman, project manager for Bristol, a San Francisco-based real estate investment and development firm. In addition to taxes, maintenance, insurance– the usual element of a triple net lease–the tenants will also pay for roof maintenance, because they keep so much equipment there, he says. That’s about $15 per sf more than the first tenant that signed in the area at 1500 Eckington Place, and about $5 per sf more than other rents quoted in the area now.

The 440,000-sf site is the second that Bristol has master-planned as a telecommunications center, after Hudson Square Telecom Center, a New York site that was the first master-planned telecommuncations center in the country. The plans are important. Not only did they help Bristol line up a higher rent–they give it room to expand power and fiber-optic communication capacity as tenants grow.

Bristol began renovating the building back in April, and expects tenants to move in by January or February 2001, Pellman says. He declined to say the cost of the renovation, but said it was “in the millions.” The site lies on a seven-acre tract where zoning rules let Bristol build another 1.2 million sf, which it plans to start planning soon.

Tishman Real Estate Services represented Bristol, Spaulding & Slye dealt for Teleglobe, Node Com Inc. spoke for 360Networks.Another 125,000 sf of the building are under negotiation, he notes.

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