ADG Real Estate

Overview

Leveraging Decades of Insight into the Real Estate Needs of Federal Agencies and Government Contractors

For decades, Blank Rome has represented real estate owners, developers, and government contractors in all aspects of their real estate portfolios (including successfully competing for construction, asset management, and long-term leasing opportunities involving federal agency customers).

With the support of a full-service nationwide real estate practice, we have successfully handled a broad range of acquisitions, dispositions, investments, development, construction, dispute resolution, environmental, financing, leasing, tax, zoning, land use, and workout matters.

Development & Construction

We assist clients on the business aspects of design and construction agreements, identify problems, and develop creative solutions. We also navigate through contractor defaults and disputes, and help clients resolve claims. We bring to bear decades of experience and a multi-dimensional approach that addresses the critical concerns of owners, developers, tenants, and contractors, including: contract agreement development and negotiation; construction financing; performance/payment bonds; new markets tax credits; environmental issues; Leadership in Energy and Environmental Design (“LEED”) certifications; land use and zoning; owner-Controlled Insurance Programs (“OCIP”) and Contractor Controlled Insurance Programs (“CCIP”); employment and labor issues; and, dispute resolution and litigation.

Tax Issues

Our attorneys regularly counsel clients in matters involving federal, state, and local taxation, including tax assessments, use and occupancy taxes, business privilege taxes, transfer or documentary taxes, stamp taxes, and tax exemptions and tax abatement programs. We approach the tax issues raised in these various contexts with an awareness of the special needs of the ADG industry to provide practical solutions that work for our clients.

Federal Real Estate and GSA Leasing

Complementing our nationwide real estate practice, we bring targeted experience across all aspects of federal real estate, including solicitation and proposal analysis and development, lease administration, bid protests, claims and terminations, privatization, enhanced-use leasing, and financing matters. 

Our experience gives us in-depth knowledge of how the General Services Administration (“GSA”) and federal agencies must develop their requirements, as well as the processes, authorizations and rules governing leasehold procurements. Our many years of in-depth knowledge, coupled with our keen sensitivity to our clients’ business objectives, allow us to advise our clients so they can make informed business decisions when navigating federal construction and leasing opportunities and contested lease procurements.

Experience

  • Obtained a seminal and comprehensive victory which cleared the way for our client to become the FCC’s lessor for the next 20 years after the agency attempted to cancel a solicitation. Following litigation at the Court of Federal Claims, the Court enjoined the cancellation of the RFP and the U.S. Court of Appeals for the Federal Circuit affirmed and directed GSA to continue with the procurement (which our client won). 
  • Successfully defended an estimated $210 million award to build and lease to the FAA 300,000 square feet office space for 20 years.
  • Successfully represented a cybersecurity firm in a breach-of-lease action in Virginia state court that involved a parallel federal takings action resulting from the government’s holdover tenancy. We argued against the lessor’s efforts to obtain hundreds of thousands of dollars in damages from client in the state action and helped negotiate a favorable settlement involving our client, the United States, and the lessor in the federal action.
  • Successfully protested a competitor’s award of a potential 30-year lease for 488,374 net usable square feet for NASA’s Headquarters facility, by showing the awarding agency misled our client during price discussions.
  • Defended client’s GSA award of a potential 30-year lease for approximately 425,000 square feet for use by the Federal Energy Regulatory Commission.
  • Successfully defended client’s award of a potential 10-year lease, for up to 177,000 square feet for the USDA.
  • Advised building owner on government contracts, termination, and security considerations in negotiations for 400,000 square foot lease for secure space for major government services contractor.
  • Successfully defended the award to our client of a lease for 88,654 rentable square feet for the National Nuclear Security Administration.
  • Obtained favorable settlement by protesting competitor’s award of a potential 20-year agency lease at an annual rental rate exceeding $20 million. Our team challenged the terms of the Request for Lease Proposal, GSA’s evaluation of proposals, and the agency’s failure to mitigate an Organizational Conflict of Interest.
  • Represented a sponsor with respect to a significant multi-use development project in the Bedford Stuyvesant section of Brooklyn, structuring NMTCs in connection with deal financing.
  • Provided representation of clients in federal, state, and local civil and criminal tax controversies, including audits, administrative appeals, and litigation.
  • Provided counsel on cross-border real estate investments, both for non-U.S. investors in U.S. real estate and U.S. investors in non-U.S. real estate.
  • Represented an international investment bank in the development of a 1.6-million square-foot office building and related improvements, including a pier and ferry terminal, underground garage, park, and site improvements.
  • Represented an international investment bank in development projects in the United States, Asia, South America, and Central America.
  • Represented an international consortium of civil engineering contractors in the first bid challenge lodged against a public works department of the Hong Kong government under the World Trade Organization (“WTO”) Agreement on Government Procurement, relating to the $500 million Central Reclamation Phase II project.
  • Represented a regional hospital in its construction of a hospital, cancer center, medical office building, and site improvements.
  • Represented the developer of a power center for lease to national big-box retailers, in connection with all development aspects of the project, including preparation of reciprocal easement and related agreements.
  • Represented the real estate and related arrangements required by a major sports franchise to obtain economic assistance and other benefits from state and city governments, and a regional port authority in the development and financing of a new $350 million football stadium and a $30 million practice facility.
  • Represented one of the largest Mid-Atlantic affordable housing developers in all aspects of its projects, amounting to issues resolved included property acquisition, zoning, financing, tax-credit application and compliance (low-income and historic), and architectural and construction contracting.
  • Represented the developer of a 40-unit, affordable-housing rental development in New Jersey with a mixed-finance operating subsidy project, financed in part by HUD, that also included three other lenders. Additionally, our attorneys managed all real estate and title issues, and negotiated the architectural and construction contracts, as well as the tenant lease forms and the management agreement and plan.
  • Represented a large urban housing authority in its rehabilitation of a 137-unit, historic residential-apartment complex in Philadelphia using low-income housing tax credits, historic tax credits, and capital funding from HUD, including the negotiation of Historic Part 1 and 2 approvals from the U.S. Department of the Interior.
  • Represented a private developer in its development of a 60-unit, residential rental project in New Jersey utilizing low-income housing tax credits, including the negotiation of an acquisition and investment agreement with the market-rate developer of an adjacent property, as part of a Mt. Laurel, New Jersey, settlement.