Army, Trammell Crow Shake Hands on $500M Office Project

The U.S. Army’s Fort Meade, located less than 30 miles from Washington, D.C., in Anne Arundel County, Md., is on track to sprout an office complex with as much as 1.7 million square feet now that the U.S. Army Corps of Engineers has reached a tentative agreement with Trammell Crow Co. for the project’s development. Trammell Crow will spend an estimated $500 million to realize the endeavor. The Fort Meade Technology Center (pictured) will be built as part of the Enhanced Use Lease program and will be situated on 173 acres of installation property near Fort Meade’s Visitor Control Center. In addition to the Class A office space, the project will encompass retail offerings, park areas and recreational amenities. Trammell Crow will also take on responsibility for the development of two new golf courses and a clubhouse on the base’s periphery. There is an inherent demand for massive amounts of office accommodations in the Fort Meade area, given the impact the U.S. Department of Defense’s Base Realignment and Closure program will have on the 5,400-acre base. “With the relocation of the Defense Information Systems Agency and other groups to Fort Meade, along with the expansion of existing agencies such as the National Security Agency, we project substantial employment growth within the submarket surrounding Fort Meade,” Mark Corneal, senior vice president with Dallas-based Trammell Crow’s Washington D.C. office, told CPN today. As the relocated military positions make their way to the area, a hoard of defense contractors will follow. According to Anne Arundel County documentation, an estimated 23,000 federal and private sector jobs will come to the county, which, in addition to its proximity to the District, sits only about 15 miles from Baltimore. “We project this growth to take off in 2010, and continue for the next 10 years,” Corneal added. In lieu of shelling out the big bucks for a ground lease of the property, Trammell Crow will pay for the land’s use via in-kind services. Real estate services firm CB Richard Ellis Inc., Trammell Crow’s parent company, will handle the leasing of the office space. The next step toward kicking off work on FMTC, which will adhere to LEED standards, is the finalization of documents for the Department of the Army’s approval. With all signatures in place on the negotiated term sheet for the project, if all goes as planned, land development will get underway later this year in time to commence construction on the first building in early 2009 for completion in 2010.Trammell Crow, established in 1948, is one of the country’s leading real estate developers and investors. The company has developed or acquired approximately 500 million square feet of properties valued at more than $50 billion over the last six decades, and presently it has $9.1 billion of projects in progress or in the development pipeline. To Blog and Comment Click Here