Skanska Buys Into Massive Tysons Development, Plans To Build Apartments And Retail
Skanska, a Swedish developer that has long been active in D.C., has just made its first investment in the growing Tysons submarket.
The developer announced Monday it acquired a parcel of the Scotts Run development site from CityLine Partners for an undisclosed price. It plans to build an apartment building with roughly 350 units and ground-floor retail.
The Scotts Run development is planned to include 8M SF of development near the McLean Metro station, including a mix of office, multifamily, hotel and retail. CityLine had submitted the site for the Amazon HQ2 competition but it was not included as part of Northern Virginia's official bid.
The 94K SF piece of the site Skanska acquired sits at the intersection of Colshire Drive and Colshire Meadow Drive, about a quarter-mile from the Metro station. In addition to the apartment building and retail, Skanska plans to build a public plaza and a private street on the site.
The parcel is across the street from the 22-acre Mitre Corp. campus, where the organization recently received Fairfax County approval to add five new office buildings. Skanska's site is also next to CityLine's planned 200-room hotel, where it reached a deal with hospitality company Lodgeworks to use its boutique flag, Archer.
Skanska Executive Vice President Mark Carroll said he hopes to receive the necessary approvals to break ground mid-to-late 2019, giving the project an estimated delivery in early 2022. He said Skanska has been keeping a close eye on Tysons' growth and sees it as an attractive area for multifamily development.
"If you compare Tysons to other markets, there's a shortage of residential development compared to the amount of office development," Carroll said. "We think there's an opportunity there."
The project would be Skanska's first in Tysons and second in Northern Virginia, following its development of the 1776 Wilson Blvd. office building in Rosslyn, which it sold in 2014 for $90M. Skanska has also recently built the 99 M spec office building in Capitol Riverfront and the Cleary Gottlieb-anchored 2112 Pennsylvania Ave. NW, and it is working on the first phase of its three-building Tyber Place mixed-use project in NoMa.
