CLARIFICATION: This story has been updated to reflect the exchange rate at the time of Skanska's announcement of third-quarter write-downs. Those write-downs came from only the construction operations division of the company.
Dive Brief:
- Skanska USA Commercial Development is once again making news in the speculative building market after it applied for a building permit for a 220,000-square-foot, 12-story office building in Washington, DC, the Washington Business Journal reported.
- Although the construction giant hasn't yet lined up an anchor tenant for the building, Circa restaurant has signed on to occupy 5,000 square feet of the 11,000 available square feet of retail space.
- The building, referred to as "99M" after its street address, will also have four levels of underground parking and 11,000 square feet of retail and restaurant space on the ground floor. According to Skanska, amenities include a 4,300-square-foot tenant-only health club and locker room, a 4,750-square-foot rooftop terrace with covered and outdoor workspaces, secure bicycle storage with a maintenance station, and an electric car charging station.
Dive Insight:
According to Skanska, it is self-financing 100% of the development costs, and the building should be complete in late 2017.
This is the second spec office Skanska is building in the DC area. In October, the company announced plans to develop an 11-story, 250,000-square-foot office building on the George Washington University campus. Skanska also announced a $26 million investment in a new, 17-story, 122-unit multifamily tower in Boston, which the Skanska U.S. Building division will develop and build for $88 million.
"99M’s location, design and amenities capture the vitality of the area, and the energy and personality of the Capitol Riverfront," Executive Vice President for Skanska USA Commercial Development Rob Ward said after first announcing the project in July. "We are very confident to move forward on a speculative basis. We believe that this building will be a key component in this rapidly growing mixed-use neighborhood that is becoming one of the District’s go-to destinations."
Skanska has continued to pursue its U.S. strategy despite posting $74 million in third-quarter write-downs in its operations division. In September, a Skanska executive announced plans to expand the company's property development business into new U.S. markets in response to an increased demand for office space.
