Foulger-Pratt lands equity partner for $200M Tysons office building. But it still needs tenants.
Foulger-Pratt said Thursday it has secured equity financing from USAA Real Estate Co. for its $200 million-plus trophy office building in Tysons.
Michael Abrams, senior vice president of acquisitions for Potomac-based Fougler-Pratt, declined to disclose exact figures but said USAA Real Estate will represent approximately 40 percent of the equity needed for the nearly 400,000-square-foot project, which is planned for a site near the intersection of Leesburg Pike and Chain Bridge Road adjacent to the Greensboro Metro station.
The 25-story office tower, Foulger-Pratt’s first effort in Tysons, will be part of the $750 million Tysons Central, a 5.79-acre, 1.5 million-square-foot mixed-use project. The site includes the former Clyde’s of Tysons, which closed in February 2017 to clear the way for the larger development.
The deal with San Antonio, Texas- based USAA Real Estate was secured after more than eight months of negotiations, Foulger-Pratt officials said, and will prove critical to attracting tenants to the project. The office building 25,000 square feet of retail will feature a two-story lobby, sky lobby with breakout space and conference technology, and a fitness room on the 21st floor featuring views of the Blue Ridge Mountains.
“Given the scale of these projects, tenants want to know that the money is all lined up,” Abrams said. “It just continues to enhance our position in the marketplace to attract the kind of pre-lease tenants that these projects need.”
Abrams said the financing means that Foulger-Pratt can advance some pre-development work but likely won’t begin construction until a pre-lease is in place, hopefully by next year.
Once construction starts, the project at 1750 Tysons Central St. will take between 24 to 30 months to complete. Rents will range from the mid-to-upper $50s per square foot for spaces ranging for between 21,000 and 28,000 square feet.
In the meantime, Fougler Pratt, which first pitched the project in 2015, is in “active discussions with several pre-lease opportunities,” he said. The company is working with Avison Young principals Dave Millard, Peter Berk, Mike Shuler, and Nick Gregorios to secure prominent tenants for the building.
Dirk Mosis, executive managing director for USAA Real Estate, said in a statement that the company’s commitment to the new building is an investment in the “Tysons of tomorrow” as the edge suburb is slowly transformed from an automobile-centric business district into a 24/7, Metro-accessible live, work and play community.
“As this area becomes more accessible and pedestrian friendly, we expect an incredible amount of growth from the Fortune 1000 companies that want to be here,” Mosis said.
USAA Real Estate has more than $21 billion in assets under management, and provides co-investment, acquisition, build to-suit and development services for corporate and institutional investors.