The Blueprint for an Economic Recovery

The Blueprint for an
Economic Recovery
By Douglas Wilson
We believe that the NOAA and Half Street projects provide a blueprint for how the economic
recovery can work. A successful recovery must involve cooperation among the financial
sector, national and local government, education and research. These are the players in the
NOAA and Half Street stories, and through this cooperation and convergence these projects
are back on track, and will have an impact on regional and national levels.

The Blueprint for an
Economic Recovery
Douglas Wilson Companies (DWC) has successfully completed two
major building projects—the new home for the National Oceanic
and Atmospheric Administration (NOAA) and the Opus East Half
Street office building—that will have a significant economic impact
in the metropolitan Washington, D.C. area.
At the end of the day, NOAA’s National
Centers for Environmental Prediction will
provide essential tools for the United States
to anticipate and respond to the immediate
threat of a hurricane as well as the long-term
challenges of climate change.
DWC came into the picture for both of these projects in 2009, within
two weeks of each other. We knew these buildings had implications
for future development in the Washington, D.C. area. We also
understood the complexities of these projects: navigating and
negotiating with a series of interested parties to achieve successful
outcomes.
As the Receiver for both of these projects,essentially, we had to
take on the role of developer, working with construction companies,
architects and engineers to ensure that the buildings would advance
to completion.
The NOAA project had significant challenges. The NOAA building
got off to a promising start in 2006 when ground was broken.
However, three years later, amid a series of disputes and lawsuits,
the lease was in default and the project had abruptly stopped.
Taking over as Receiver, we immediately began discussions with
the U.S. General Services Administration (GSA), the agency
responsible for meeting the space requirements of federal
agencies, and Bank of America, which provided financing for the
NOAA building. At the time of the default, the project was nearly
two-thirds complete, but it still required more than $65 million to be
finished.
Our discussions extended to the offices of U.S. Sen. Barbara
Mikulski of Maryland and U.S. Rep. Steny Hoyer of the 5th
Congressional District of Maryland which includes the NOAA site.
We also engaged discussions with the University of Maryland, who
viewed the NOAA building as a vital component of its M-Square
research park, a crossroad where government, private industry,
technology and science converge.
What we saw in the NOAA project was a commitment on the part of
the GSA, Bank of America, government officials, education leaders
and the private sector to work out the details of the project. They
all understood that the stakes were high, and were willing to take
intelligent risks to resume the project. Upon successful completion,
NOAA’s National Centers for Environmental Prediction will provide
essential tools for the United States Government to anticipate and
respond to the immediate threat of a hurricane as well as the longterm
challenges of climate change.
After months of conversations, negotiations and compromises,
DWC was able to get the NOAA building back on track. In
December 2011, NOAA Maryland LLC purchased the building from
Bank of America. The 270,000 square-foot building is scheduled to
be occupied this summer.
The 400,000 square-foot Opus East Half Street office building is located
in the Capitol Riverfront District of Washington, D.C., two blocks from the
Washington Nationals’ new ballpark and near the U.S. Capitol. As Receiver,
we were responsible for coordinating the develpoment and construction
activites of the property. Concurrently, we negotiated the settlement of
numerous mechanics’ lien claims, all in an effort to prepare the property for
takeout financing by another financial institution.
The project was only about 40 percent built when we took over as
Receiver—less than two years later, it was ready for occupancy.
The Half Street building, completed in June 2011, was transferred to
Prudential Real Estate Investors (PREI ®) in January 2012. PREI ® will
oversee the leasing of the office space for the building.
There is no question difficult and challenging economic times remain.
This is proven as we encounter projects that have failed for one reason
or another each day in our business. A recent USA Today story captured
at once the challenges and promise of the commercial real estate market.
The story pointed to a report that lenders “were still saddled with $181
billion in distressed loans in February, according to Real Capital Analytics
(RCA).” The story emphasized, however, that the commercial real estate
market “is turning around far more quickly than analysts expected, with
troubled loans falling, occupancy rising and office building sales surging
in the largest markets.” What we have seen in the NOAA and Half Street
projects is a promising sign, a sign that through collaboration and a belief
in common ground we can move our economy forward.
What we have seen in the NOAA and
Half Street projects is a promising sign,
a sign that through collaboration and a
belief in common ground we can move
our economy forward.
Opus East Half Street Office Building
Washington, D.C.
About Douglas
Wilson Companies
Founded in 1989 and headquartered in San
Diego, Douglas Wilson Companies is one of the
largest firms of its kind, providing a wide range
of specialized business and real estate services to
law firms, state and federal courts, corporations,
partnerships, pension funds, REITs, financial
institutions and property owners nationwide.
To date, the company has provided problem
resolution for assets valued in excess of $12 billion.
For more information call 619.641.1141 or visit:
www.douglaswilson.com
PHOTO CREDIT:
Mary Parker Architecture Photography, courtesy of
Skanska USA Building
National Oceanic and Atmospheric Administration (NOAA) Research Facility
University of Maryland
www.douglaswilson.com • 619.641.1141

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