Falcon Undertakes Major Condominium Development Project in Tysons Corner, Virginia
ACQUISITION
Falcon Undertakes Major Condominium Development Project in Tysons Corner, Virginia
On August 22, 2005, Falcon Real Estate closed on the purchase of a large tract of land in Tysons Corner, Virginia, on which a major condominium development project is to be built.
Falcon has gone into partnership with The Penrose Group of Washington, D.C., and The Donohoe Companies, Inc., also of Washington, to construct seven apartment towers that will contain 1,354 apartments. In addition, there will be an underground garage serving all seven towers and a two-story retail building containing a luxury grocery store to serve the complex. Penrose has had extensive experience in apartment and condominium development throughout the United States, and Donohoe is one of the major construction companies in the Washington metropolitan area.
The land was purchased from the West Group, the principal developer of Tysons Corner, which is considered to be the premier suburban community in the Washington, D.C. metropolitan area. West had worked for several years to have this land zoned so that condominiums could be built on it. Since most of the development in Tysons Corner had been in office and retail and not in apartments, the West Group decided to sell the land to more experienced apartment developers. For this reason The Penrose Group was selected. Penrose then reached agreement with Donohoe to be the construction contractor and with Falcon to handle the financial aspects of the development.
Artist's rendition of planned condominium development project.
The land was purchased at a price of $169 million, reflecting the value attributed to the land as a result of the zoning that had been obtained and the resulting number of condominium units that could be built. After allowing for first mortgage financing, Falcon raised $52 million from a group of U.S. and overseas investors. In addition, the development partners are investing over $8 million in the project. It is expected that construction of the first two towers, including the retail space, will commence later in 2005.
The development has been named Park Crest and information has been available to the public both onsite and through a website. Within a very short time after the announcement of the development, over 3,000 people had filled out questionnaires indicating their possible interest in purchasing a condominium in this development. Construction of all subsequent towers will be scheduled to begin after a specified level of pre-sales has been achieved.