Plans Call for Multi-Million Dollar Renovation of Luxury Hotel/Office Complex
WASHINGTON, D.C., June 11, 2002New officials of The Madison Hotel & Office Building today announced changes in ownership and management of the complex, one of Washington, D.C.s most renowned hotel and office facilities. The Buccini/Pollin Group (BPG), a full-service commercial real estate and hotel development, acquisition and management company, and Monument Realty LLC, one of the most active real estate developers in the Washington, D.C. region, will take over the operations of the complex under a long-term lease arrangement with Multi-employer Property Trust (MPT), a pension trust fund. MPT purchased the mixed-use project from the estate of Marshall B. Coyne for an undisclosed price.
Concurrently, BPG/Monument announced that it will undertake a $30 million renovation of the hotel and office building later this year with a tentative completion date of summer 2003. BPG will operate the hotel and Monument Realty will manage the office space.
Located in the heart of Washingtons central business district at the intersection of 15th and M Streets, the Madison Hotel and Office Building features 353 luxury hotel rooms/suites with more than 16,000 square feet of meeting and function space, and nearly 95,000 rentable square feet of office space. The property is four blocks from The White House and is within easy walking distance of the new Washington Convention Center, which will offer 750,000 square feet of exhibit space when it opens in March 2003 and is expected to have a significant impact on the citys hotel industry.
The venture has engaged the architectural firm Brennan Beer Gorman Monk to design and oversee a major renovation of the complex, including thoroughly modernizing the hotels infrastructure, including installing the latest wireless and high speed electronic technology. Plans also include completing the renovation of all hotel rooms and suites, replacing the mechanical systems and roof and a complete make-over of the lobby, restaurants and meeting space. The hotel recently concluded a partial renovation, including approximately 75 rooms, installation of state-of-the-art life safety systems and elevators, and is in excellent operating condition.
The Madison is certainly one of the nations most highly regarded hotels, and our goal is to recapture the propertys historic leadership role in the city, said Dave Pollin, BPG president, whose company will oversee operations of the hotel. While we will thoroughly upgrade and modernize the hotel and its infrastructure, we will maintain the hotels world-famous charm and eclectic atmosphere, attention to detail and gracious service.
At the same time, the office building and garage will undergo extensive upgrading. The heating and cooling system will be replaced with a state-of-the-art heat pump system, the office lobby entrance will be completely renovated and elevator cabs will be refinished and upgraded. Bathrooms on the tenant floors will be completely refurbished.
In conjunction with the renovation, the office building will be repositioned in the Washington, D.C. market. Connected to the hotel, the office building will provide direct access to the hotels restaurant, lobby, meeting rooms and health club. This first-of-its-kind arrangement in the city will provide office tenants with access to the full range of hotel facilities, including dining, meeting rooms, health club, concierge, catering and laundry services.
We believe the unique services offered by the adjoining hotel, combined with upgrades to the office building, will clearly differentiate our tenants facilities from any other office complex in Washington, D.C., said Michael Darby, principal, Monument Realty.
Built in 1962 by Marshall Coyne, one of the citys most successful real estate developers, the complex was officially opened by President John F. and Mrs. Kennedy. The hotel has hosted heads of state and dignitaries from more than 35 countries, including then president-elect George W. Bush, as well as Fortune 500 CEOs, movie stars and a variety of international luminaries.
Among the things that most distinguish the Madison from its peer group of luxury, independent hotels are its oversized rooms, proximity to the citys new Convention Center and on-site parking, Pollin said.
He noted that PM Hospitality Strategies (PMHS), BPGs hotel management affiliate, will manage the hotel. We do not anticipate any personnel changes at the hotel, he said. The propertys staff has an extraordinary reputation for service, and that is a tradition we intend to
build on. With PMHS proprietary management systems and BPGs expertise in renovation and redevelopment, our goal is to reinvigorate this grande dame and give the staff the amenities they need to recapture the hotels leadership position in the city. We intend to keep the classic look and feel of the Madison but bring it up to 21st century standards.
Pollin pointed out that his company, which is headquartered in Alexandria, Va., recently had completed the renovation and redevelopment of City Center @ Wilmington, the former DuPont World Headquarters, which contains more than a million square feet of office space and 85 corporate apartments. BPG currently owns and operates seven hotels and have an additional three full-service hotels under construction, he said. Combined with the extensive experience of major projects undertaken by Monument Realty, we are comfortable with the size and scope of the Madison project.
Atlanta-based Hodges Ward Elliott and Insignia/ESG were brokers for the transaction.
The Multi-employer Property Trust, headquartered in Washington, D.C., is a pension trust comprising 188 Taft-Hartley pension trusts.
Washington-based Monument Realty LLC has developed more than 3.5 million square feet of office space in the Washington, D.C. area. Founded in 1998 by Jeffrey T. Neal and Michael J. Darby, the company currently has three office buildings with nearly 750,000 square feet of space under construction, including Ballston Point, Crescent at Carlyle and Franklin Square North. Monument Realty also has four major office, condominium and apartment complexes totaling more than one million square feet in development, including Eleven, Monument Three @ Worldgate, Monument Technology Campus and Potomac Place. In addition, the company has more than 600,000 square feet of office space under management, including Monument One @ Worldgate, Monument Four @ Worldgate and Ballston Tower.
PM Hospitality Strategies, an affiliate of The Buccini/Pollin Group, currently operates seven hotels and is overseeing the construction of three additional upscale hotels, all on the Eastern Seaboard. The company is an approved franchisee of Marriott, Hilton, and Choice Hotels. PMHS hands-on founders oversee all aspects of day-to-day operations, and emphasize marketing, employee development, and cost-effective operations for each hotel. With
strong financial backing, PMHS ranks among the fastest growing hospitality management
organizations in the United States. During its first three years, the company increased operating profits ten-fold. Additional information about the company may be found at its Web site: www.pmhs.com.
In addition to its hotel holdings, The Buccini/Pollin Group, founded in 1992, has acquired or developed 17 office, industrial, retail or parking garage facilities, including the 1.2 million-sq.-ft. former Dupont World Headquarters Complex and One Rollins Plaza, both in Wilmington, Del., and the 75,000 sq.-ft. BioReliance biotech manufacturing plant in Rockville, Md. Headquartered in Alexandria, Va., the company currently is constructing a 275-suite Embassy Suites Hotel at Bostons Logan Airport and developing an Embassy Suites Hotel and Homewood Suites by Hilton in Dulles, Va. Additional information about the company may be found on its Web site: www.bpgroup.net