Silver Springer
February 9th, 2007, 09:33 PM
Atlantic Realty cashing in on building
by Sonny Goldreich | Special to The Gazette
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Few office buildings in Silver Spring better illustrate the downtown commercial real estate renaissance than 801 Roeder Road, which is close to changing owners.
When Atlantic Realty Corp. of Vienna, Va., bought the 10-story building for $4.78 million in 1999, it was listed as a Class B structure and had only one tenant occupying about 13 percent of the space, according to CoStar, the Bethesda real estate information service. Now, after $600,000 in renovations in recent years, including a new façade, garage improvements and mechanical upgrades, the building is being marketed as Class A, is almost fully leased and has a buyer.
‘‘We’re currently negotiating and under contract,” said Joe Friedman, vice president of Transwestern’s asset investment sales group office in Bethesda.
He said he could not disclose the buyer or price, but the 92,461-square-foot building has the potential to generate almost $2.8 million in annual gross rental income if it could maximize its leases at top market rates.
‘‘The existing tenant roster has some below-market leases but Silver Spring has experienced a pretty substantial spike in rates over the past 18 months and is approaching $30 per square foot,” Friedman said.
Transwestern’s sales brochure reflects the rebound of the downtown Silver Spring market, noting its overall 1 percent direct vacancy rate for Class A buildings, which is the tightest in the Washington, D.C., region. Atlantic’s 801 Roeder sits in the middle of it all, less than two blocks from the intersection of Georgia Avenue and Colesville Road.
The 31-year-old building is more than 93 percent leased, with three vacant suites on different floors totaling 6,308 square feet of available space, according to Atlantic. The building has added several large tenants in recent years, including the Children’s Hospital Foundation, which leases 13, 278 square feet.
Atlantic also restored life to Silver Spring Plaza, a 243,582-square-foot building that had been vacant for 10 years when the company bought it in 2000 for $4.5 million. It transformed the structure at 8757 Georgia Ave. into a fully leased Class A property after investing $32 million in renovations.
by Sonny Goldreich | Special to The Gazette
E-mail this article \ Print this article
Few office buildings in Silver Spring better illustrate the downtown commercial real estate renaissance than 801 Roeder Road, which is close to changing owners.
When Atlantic Realty Corp. of Vienna, Va., bought the 10-story building for $4.78 million in 1999, it was listed as a Class B structure and had only one tenant occupying about 13 percent of the space, according to CoStar, the Bethesda real estate information service. Now, after $600,000 in renovations in recent years, including a new façade, garage improvements and mechanical upgrades, the building is being marketed as Class A, is almost fully leased and has a buyer.
‘‘We’re currently negotiating and under contract,” said Joe Friedman, vice president of Transwestern’s asset investment sales group office in Bethesda.
He said he could not disclose the buyer or price, but the 92,461-square-foot building has the potential to generate almost $2.8 million in annual gross rental income if it could maximize its leases at top market rates.
‘‘The existing tenant roster has some below-market leases but Silver Spring has experienced a pretty substantial spike in rates over the past 18 months and is approaching $30 per square foot,” Friedman said.
Transwestern’s sales brochure reflects the rebound of the downtown Silver Spring market, noting its overall 1 percent direct vacancy rate for Class A buildings, which is the tightest in the Washington, D.C., region. Atlantic’s 801 Roeder sits in the middle of it all, less than two blocks from the intersection of Georgia Avenue and Colesville Road.
The 31-year-old building is more than 93 percent leased, with three vacant suites on different floors totaling 6,308 square feet of available space, according to Atlantic. The building has added several large tenants in recent years, including the Children’s Hospital Foundation, which leases 13, 278 square feet.
Atlantic also restored life to Silver Spring Plaza, a 243,582-square-foot building that had been vacant for 10 years when the company bought it in 2000 for $4.5 million. It transformed the structure at 8757 Georgia Ave. into a fully leased Class A property after investing $32 million in renovations.