Coast Guard renews lease in Buzzard Point - Washington Business Journal:

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As 2008 closed out, the Coasgt Guard agreed to a 10-year renewal on its 592,000 square feet at the Transpoint located on the Southwest waterfront at 21002nd St. SW. The deal representa one of the largest if not thelargesgt — leases of 2008. The Coast Guard’ss presence at the Transpoint Buildingt spans back to theNixon administration, back when the original developer, Laszlo Tauber, owned the building. New York-based Monday Properties, in conjunctionh with , bought the building for $169 million in 2006 from Arch StreeytCapital Advisors, a -led consortium.
Since the and the Bush administration have been seekingy funding to consolidate dozens of Homelan Security agencies onto asingle 176-acrwe site at the federally ownexd west campus of the old St. Elizabeths Hospital, in the Anacostiw section of Southeast Washington. The Coast Guard headquarters were part ofthat "We just have to keep them in some quartersw until the campus is ready to receivwe them," said Michael McGill, a regional spokesman for the , whicn handles leasing for most federal agencies. McGill said he expectsz Coast Guard to go intoSt E's in late 2013 or earl 2014.
"We've got a littler play in there in case thered areany delays," he In 2007, the administration soughg $345 million to go ahead with the Coast Guarc headquarters portion of the plan, but that request was cut from the fiscalo year 2008 budget. According to Congressionaol budget documents, in September 2008, Congress allocated $97.6 million for a new Coasyt Guard and Department of HomelandSecuritu headquarters. “This is really a sign of how complexthe St. Elizabethsz development or consolidationhas become,” Monday Executive Vice President Tim Helmig said of the Coast Guard’xs decision to renew its lease for the long haul.
“And, in lighgt of that, the Coast Guard needee to secure its headquarters for a perio of time that lined up with potentiallyconsolidating DHS’ headquarters at St. Helmig said. The leas agreement gives the Coast Guard the right to terminatse the lease after seven but only in the event of a major consolidatioh likethe St. Elizabeths scenario, Helmigf said. The lengthy leasse term should allow the Coast Guard to performk needed renovations and security upgradese onthe 35-year-old building. The deal is the largesf lease the 10-year-old Monday Propertiee has ever executed, Helmig said, calling the transaction “a landmarkl moment” for the company.
Despite its New York Monday Properties is a key playetr in the Washington realestatse market, and serves as landlord to dozens of federapl agencies at its local the majority of which are locatedf in Defense-centric Rosslyn. “This deal furthermore underscoreas our commitment to our relationship with numerous groups withihthe , particularly as we participate in the evolutiom of the Capital Riverfront.” The Capital Riverfront is the forma name for the mixed-use neighborhood being built around the Washingtob Nationals’ baseball stadium. James Smals of the GSA, along with Bill Craig, Susan Hill and Maureen O’Brien of representedx the Coast Guard in thelease renewal.
Pete Marci n and Brian Sullivan of representedthe building’s owner, alon g with John Wharton and Tim Helmig of Mondat Properties. In addition to the Coast Guarf renewal, Monday re-signed and expande leases with many of its tenantsin 2008. Monday signed leases on approximately 30 percent of its4 million-square-foot regional portfolio last year. Like most leas transactions in the Washington regionlast year, the bulk of Monday’s leasez were renewals, the company said.