SOURCES SOUGHT
E -- Sources Sought-Acquisition of Station Place Buildings, Washington, DC
- Notice Date
- 11/16/2004
- Notice Type
- Sources Sought
- NAICS
- 531120
— Lessors of Nonresidential Buildings (except Miniwarehouses)
- Contracting Office
- Securities and Exchange Commission, Procurement and Contracts Branch, Operations Center, 6432 General Green Way, MS 0-20, Alexandria, VA, 22312-2413
- ZIP Code
- 22312-2413
- Solicitation Number
- SECHQ1-05-RFI-0001
- Response Due
- 12/3/2004
- Archive Date
- 12/18/2004
- Description
- The Office of Administrative Services is responsible for the real property leasing program of the United States Securities and Exchange Commission. In 2001 the SEC entered into a lease with Louis Dreyfus Properties, Inc., for a 14 year lease for a property of approximately 707,000 Building Owners and Managers Association (BOMA) rentable square feet (rsf) to be constructed next to Union Station, 100 F Street, NE, Washington, DC 20002 (Building One), with occupancy currently scheduled to commence in approximately Spring 2005. Subsequently, the lease was amended to add another property adjacent to the first at 600 2nd Street, NE, Washington, DC 20002 (Building Two) of approximately 363,000 BOMA rsf for a 14 year term to commence within one year of completion of Building One. The flat, non-escalating lease rate for each building is $43.63/BOMA rsf full service per year, with adjustments for variations in operating costs and taxes. All spaces subject to measurement. In connection with the leases, the Government has the right to purchase either Building One, or Building One and Building Two, by paying a higher lease rate over the lease terms. The Government is considering transferring these purchase options to a private entity in exchange for considerations in return. The purchase options are summarized as follows: SEC has the right to purchase (i) Building One only, or (ii) Building One and Two together. Purchase options must be executed prior to the Lease Commencement Date (i.e., the occupancy date) for Building One, otherwise the options on both buildings terminate. Exercise of option on Building Two, if any, must be made at the same time as exercise of option on Building One. Building One Purchase Options: SEC exercises option by paying either (i) $67.83 full service rent per BOMA rentable square foot per year for twenty (20) years; (ii) $71.42 full service rent per BOMA rentable square foot per year for fifteen (15) years; or (iii) $72.20 full service rent per BOMA rentable square foot per year for fourteen (14) years. Building Two Purchase Option. SEC exercises option by paying $94.00 full service rent per BOMA rentable square foot per year for the fourteen (14) years of Building Two term (i.e., SEC must exercise option by giving Building Two notice at commencement of Building One term, but payment of option rent does not commence until Building Two term commences). Under all options, rent is paid in arrears, full service, including all operating expenses and taxes. Under all options, SEC makes a concluding $10.00 final payment upon expiration of the applicable lease term, upon receipt of which Lessor conveys Building title, free and clear of liens. In its notice of exercise of its purchase option(s), the SEC must specify which payment plan it elects for Building One (i.e., 14, 15, or 20 years). Pertinent parts of the leases are available included in Attachment 1 to this sources sought notice. The SEC anticipates occupying Building One and commencing the lease term in the first quarter of 2005, and Building Two approximately 12 months thereafter, subject to acceptance of space under the terms of the Lease and developments in scheduling. *** DESCRIPTION *** This is a Request for Information (RFI) only. It is not a request for proposals and does not commit the Government to issue a solicitation, make an award, or pay any costs associated with responding to this RFI. No contract action will be issued as a result of this announcement. All submitted information shall remain with the Government and will not be returned. The Government is considering whether it would be advantageous to the Government to transfer the rights to purchase the building(s) to a private entity, in exchange for value to the Government and/or the Government retaining certain rights in the future. These future Government retained rights could include a lease back of the Building(s) to the Government at a favorable rate for a succeeding long term lease, a Government right to purchase the Building(s) by a flat payment, a Government right to purchase the Building(s) through a lease to purchase over a long lease term. The Government may also consider an assignment of both the 14 year leasehold interest and the purchase option interests of the lease, with the SEC becoming a 14 year subtenant to any assignee of the lease, in exchange for value to the Government and/or the Government retaining certain rights in the future. The Government would consider other structures that would be favorable to it as well as the above examples. For example, the purchase options are set at 14, 15 and 20 year payment periods. The SEC is currently under lease for a 14 year term. There may be structure scenarios that would include the 15 and 20 year payment periods. The Government is interested in obtaining responses from entities that would be interested in participating in a competition to acquire the purchase options in exchange for consideration to the Government as outlined above or other consideration. Data obtained from this RFI will be used by the Government in making decisions on the development of an appropriate procurement or administrative strategy in connection with the purchase options. Interested organizations are invited to submit a capability statement to the SEC. Submitted information should include: a) a description of their organization, including relevant experience and history of investing in and managing complex real estate transactions; b) a description of the structures they would propose to the Government in connection with assumption of the purchase options (e.g., lease back to the Government, sale to the Government through flat purchase, or lease to purchase, or both, or other structure); c) a description of the proposed pricing formulations they would propose and how these pricing formulations are derived; d) a statement of their financial capabilities and proposed financing strategy for the structures they propose; d) additional information or questions that would be helpful in management of these purchase options. All information submitted to the SEC will be kept confidential as allowed by relevant federal law, including the Freedom of Information Act (5 USC 552) and the Trade Secrets Act (18 USC 1905). Information must be submitted by December 3, 2004. Responses should be limited to 50 pages and are preferred in electronic format and can be e-mailed to the contracting officer, Linda Sudhoff at Sudhoffl@sec.gov
- Record
- SN00709105-W 20041118/041116212259 (fbodaily.com)
- Source
-
FedBizOpps.gov Link to This Notice
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