The International Union of Bricklayers and Allied Craftworkers HQ
Project Type: Disposition of Former HQ & Acquisition of New HQ
Space Use: Office, Administration
Location: Washington, D.C.
Project Size: ~62,000 SF
Services Provided: Disposition, Site Identification & Acquisition, Zoning & Entitlements, Design & Construction Project Management
The International Union of Bricklayers and Allied Craftworkers (“BAC”) occupied its headquarters at the Bowen Building for 50 years, at which time the building had exceeded its useful life for the organization. Rather than relocate temporarily and renovate the building, BAC decided to sell the building to a local developer and lease space at 1776 I Street, NW, a 176,000 square foot building. During the BAC’s tenancy, the landlord approached BAC with an offer to sell them the building. BAC retained JM Zell to evaluate this opportunity. JM Zell quickly determined that the price was too high and the building acquisition would place BAC in a higher risk position as an owner of where it occupied less than 40 percent of the space. The lease up risk for the balance was not worth the potential return.
JM Zell then undertook a strategic assessment of the Union’s real estate requirements and formulated alternative strategies for the board’s consideration. An action plan was developed, and a search was conducted for a site to construct a new downtown headquarters. The targeted project size of 100,000 square feet (60,000 square feet for initial headquarters use) constrained the number of options available to the Union.
At the same time, The Shakespeare Theatre Company (“STC”) was struggling with its joint venture partner, a local developer, who had planned for speculative office space above the planned theatre but was not yet ready to purchase the office portion of the new theater building. The timing was right for the BAC which submitted a bid to purchase the office development rights and join STC in the development of the mixed-use project, each owning their own condominium interest. JM Zell negotiated the purchase of the development rights on behalf of BAC and managed the construction on behalf of both owners of the one-of-a-kind award-winning project.
JM Zell secured the financing for the Union, managed the base building and interior construction efforts, orchestrated the purchase of furniture and equipment, and managed the move-in.
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