ALEXANDRIA, VA-The Washington, DC regional office of LCOR Inc. has begun construction on two class A office buildings in the Alexandria submarket, after securing a $42.8-million construction loan from Bank of America (Philadelphia). The total development cost is $58 million.

LCOR is kicking in the difference as its equity investment in the project, R. William Hard, EVP of LCOR tells GlobeSt.com. The buildings, located at 1900 and 2050 Ballenger Ave., are expected to deliver in October 2008.

The four-story structures, which will also have retail space, are situated adjacent to the Patent and Trademark Office building. Proximity to that government agency alone, Hard says, will attract many tenants that do business with it. The submarket itself–particularly the Carlyle area, where the vacancy rate is less than 1%–is very strong as well, he continues. “There are a number of associations that want to locate in Alexandria.” Another draw, he says, is the walking distance to two metro stations: King Street and Eisenhower Ave.

LCOR is developing the properties on spec. Asking rental rates for the office portion, Hard says, will be in the low to mid 40s, full service.

Combined, the two brick buildings will offer 91,000 sf of office space, 37,000 sf of retail space and underground parking.

Turner Construction in Arlington is the general contractor. The architect is Still & Svitchan Associates from the District. Transwestern Retail in Washington, DC is providing retail brokerage services. McShea & Co. from Reston is serving as office broker. LCOR will own and manage the buildings upon their completion.

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