- The Washington Times - Tuesday, November 29, 2005

Spaulding & Slye, a major commercial real estate developer and leasing company in Washington for 39 years, this week agreed to be acquired by Jones Lang LaSalle in a $150 million deal.

The agreement expands Jones Lang LaSalle’s presence in Washington at a time the region is considered a top real estate investment market for the nation.

The combined firm would have nearly $30 billion in assets and 915 million square feet under management.

“The global platform offered by Jones Lang LaSalle will allow us to more effectively serve our clients for many years to come,” said David McGarry, Spaulding & Slye president.

Jones Lang LaSalle is a full service real estate firm based in Chicago but operating nationally and internationally with 20,000 employees.

Spaulding & Slye, headquartered in Boston, operates with 200 employees in the Washington area, most of whom are expected to retain their jobs.

It also dropped its affiliation this week with Colliers International, a real estate network, to become merely Spaulding & Slye. From 1986 until this week it was called Spaulding & Slye Colliers.

The rest of the company’s name will disappear except for the investment and construction units after the deal closes early next year.

Jones Lang LaSalle has agreed to pay cash at closing and additional amounts based on Spaulding & Slye’s performance.

The merger continues a trend of consolidation in the real estate industry that began while it was awash with cash as interest rates dropped to just over 5 percent in recent years.

In other news …

• Mack-Cali Realty has agreed to pay $161.7 million for the Capital Office Park in Greenbelt, a move that will triple its real estate holdings in the Washington area.

The seven-building office park covers 842,300 square feet at the western border of Prince George’s County along the Capital Beltway.

Among its 90 tenants are the U.S. General Services Administration, Verizon, L-3 Communications Titan, Lockheed Martin and Hewlett Packard. It is about 85 percent leased.

The owners are a consortium of private investors.

The agreement gives New Jersey-based Mack-Cali Realty the option to purchase 43 acres of vacant land surrounding Capital Office Park for $13 million.

The deal is scheduled to close no later than the end of the first quarter of 2006.

Mack-Cali Realty has agreed to give the current owners of Capital Office Park $97.9 million of common operating partnership units and assume about $63.8 million of their mortgage debt.

The commercial real estate investment trust owns about 1.3 million square feet of prime office space in the Washington area. It also operates in seven states, mostly in the Northeast.

• Rockville-based Forrester Construction said this week it has been awarded a contract from the Office of the Architect of the Capitol for construction, repair and alterations to properties on Capitol Hill, at Fort Meade, Md., and in Culpeper, Va.

Forrester Construction was one of five companies that won a contract under a five-year, $50 million program.

Property Lines runs on Wednesdays. Call Tom Ramstack at 202/636-3180 or e-mail tramstack@washingtontimes.com.

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