GSA’s Mid-Atlantic Region completed the sale/leaseback of the Federal Building at 500 Quarrier Street in Charleston, WV. This is the first sale/leaseback of a Federal facility in the GSA inventory.
With the construction of the new Robert C. Byrd U.S. Courthouse in Charleston, WV, tenants vacated the Federal Building at 500 Quarrier Street. GSA’s original plans involved excessing this 130,000 square foot building. However, the Social Security Administration (SSA) contacted GSA with a space request of approximately 82,000 square feet of space to consolidate their functions with the state Disability Determination Agency.
In analyzing housing alternatives, GSA considered continued use of the 500 Quarrier Street facility; however, the building required more than $11 million in renovations. With very limited resources, GSA explored other options, with the sale/leaseback of the building becoming the most cost-effective alternative. Congress inserted language into the appropriation law for the Byrd Courthouse that approved the sale and leaseback of the 500 Quarrier Federal Building, and allowed GSA to retain funds from the sale of the building.
GSA executed the sale/leaseback in September 1998 with the developer paying GSA $3.5 million for the facility and investing $11 million that will upgrade the building from Class C to Class A space. In exchange, GSA committed to lease the facility for 20 years. In addition to the up-front cost avoidance of repairing the building, GSA has a cost avoidance of approximately $4.6 million in leased costs for a build-to-suit facility. With this project SSA is able to continue to have a presence within the central business district of Charleston and increase its productivity by consolidating functions and collocating with the State social service agency.
For additional information, contact Mr. Frank McCafferty at (215) 656-5888 or via e-mail at frank.mccafferty@gsa.gov.
