Commercial Real Estate Quarterly
Liberty Center updates Wilson Boulevard

Virginia Business
December 2005

NORTHERN VIRGINIA
Liberty Center, a 1 million-square-foot, mixed-use development, continues to take shape in Ballston. Construction has begun on the final phase of the $340 million project, which has redefined a block of Wilson Boulevard in the heart of Arlington’s downtown district.

The last phase includes a 500,000-square-foot condominium apartment building and Two Liberty Center, a nine-story, 180,000-square-foot office building. It follows completion of One Liberty Center, a building of more than 300,000 square feet occupied by the federal General Services Administration in May.

At the apartment/condo project — The Residences at Liberty Center — selling prices range from the upper $300,000s to more than $1 million. Two 21-story residential towers will offer 234 luxury condominiums and 235 apartments. Planned rooftop amenities include, a terrace with panoramic views of Washington, D.C., a pool and hot tub, and a fitness center. The complex also will offer controlled-access parking and a private courtyard. More than 77 percent of the units have been sold, with sales strong among single buyers.

Liberty Center replaces an original development of three, 12-story office buildings dating to the 1960s. They were demolished to make room for the new buildings. When totally built out, the center will contain 500,000 square feet of office space, 500,000 square feet of residential space, 20,000 square feet of ancillary retail space and two public parks.
Shooshan Co. of Arlington is developing the project on behalf of the

Ballston Investor Group, a joint venture of The Fred Schnider Co. and Clark Enterprises (the companies responsible for initially developing the site) and Shooshan. While leasing has been a bit slow for Two Liberty Center, “we’re confident that we hit the market at the right point. . . We’re fortunate that we priced the building in the second quarter of ’05, before the continuing price escalations in the market [which intensified after Hurricane Katrina in late August],” says Brian Scull, vice president of development for Shooshan Co. The building, he adds, should be delivered by the third or fourth quarter of 2008.

RICHMOND
Liberty Property Trust continues to increase its presence in Richmond with the development of a Class A office building off West Broad Street near the I-64 interchange in Henrico County. Westerre III will offer more than 70,000 square feet of space and high-tech energy management and security systems. The building is scheduled for occupancy by the first quarter of 2006.

“Leasing interest in Westerre III has been excellent,” says Alan Lingerfelt, senior vice president and city manager for Liberty Property Trust. “The development of Westerre III and recent acquisitions of three Class A buildings in the Boulders Office Park are part of our plans to continue to diversify our portfolio in the greater Richmond area.”

Meanwhile, the real estate investment trust is selling its Newport News portfolio, which includes four office buildings totaling 132,445 square feet. “As part of our standard capital recycling plans, Liberty will be exiting the Newport News submarket and redirecting capital proceeds to target submarkets elsewhere on the Peninsula and Southside,” says Craig Cope, vice president and city manager for Liberty.