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DEA Completes Deal to Remain in Pentagon City Headquarters

GSA Says 15-Year Extension Will Save Taxpayers More Than $100 Million
September 13, 2018
The U.S. General Services Administration has finalized a 15-year renewal to extend the Drug Enforcement Administration's 511,487-square-foot headquarters lease in Pentagon City, confirming a report earlier this year that the agency had ended its search for a new location and would instead remain in its current offices.

The GSA disclosed in 2016 it was moving forward with a presolicitation for a minimum of 478,000 square feet of space for the DEA's new offices before completing a previously announced deal this week to renew the DEA's lease at 600-700 Army-Navy Dr. in Arlington, Virginia - a lease that was scheduled to expire at the end of this month.

One of the owners vying for the DEA's new headquarters, PGIM Real Estate, filed a federal claims lawsuit in March after the GSA revealed its intent to remain at 600-700 Army-Navy Dr., also known as Lincoln Place. PGIM, the owner of the Victory Center in Alexandria, Virginia, invested $60 million in renovations in an effort to attract an anchor tenant to the 625,000-square-foot, 13-story building at 5001 Eisenhower Ave.

In August, a federal judge sided against PGIM in its attempt to secure the DEA as the tenant for the Victory Center.

After deals with the DEA and the U.S. Transportation Security Administration (TSA) fell through - a federal judge in 2015 ruled the GSA had exceeded its authority by granting the TSA's headquarters to the Victory Center, voiding a potential deal - the vacant Victory Center building is now reportedly on the market. The TSA would finalize a deal last August to relocate its headquarters to a new 625,000-square-foot build-to-suit in Springfield, Virginia.

The GSA said the DEA's lease extension is expected to save taxpayers more than $100 million over the course of the 15-year lease term.

The DEA has spent the last 20 years at Lincoln Place, a two-building office complex owned by the California State Teachers' Retirement System. Built in the late 1980s across from the Pentagon and adjacent to Pentagon City Mall, the twin 12-story buildings at 600 and 700 Army-Navy Dr. are home to nearly 2,500 DEA employees, and include a visitors center and museum.
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