Minh Le is a self-described technologist, a former managing director with Accenture who has branched out into predictive data analytics, big data management and software development through a variety of acquired companies. Next stop, real estate.
Le and his company, 22 Capital Partners, are proposing to build Gramercy District, a 2.5 million-square-foot, $500 million development on 16 acres fronting the north side of the Dulles Greenway, adjacent to the planned Ashburn Metro station on the Silver Line. Le has landed a Fortune 50 partner in Microsoft Corp. (NASDAQ: MSFT) as a co-investor that will bring its expertise, its people and its capital to bear.
“What we’re looking to do is build the next great tech real estate company,” Le said during a meeting in his Reston office. “We believe that technology is going to be a major force and driver in the way people live, the way people learn, the way people socialize.”
“It’s not just our site,” he continued. “What we’re building is portable.”
Microsoft will help build the blueprint for an “intelligent living platform,” Le said. It will be aligned with, if not directly a part of, Microsoft's CityNext program and its focus on neighborhood management, smart buildings, operations management and sustainabile land use. While details of its role are scarce, John Hardigree, Microsoft’s strategic partner and channels lead, confirmed the company’s role. Its scope and investment will be disclosed later, he said.
Also on the Gramercy team is Tysons-based Crescent Ridge Capital Partners LLC, a hedge fund manager, which has created an investment vehicle for the project. Additional big name partnership announcements, Le said, are still to come.
“It’s rare that you have such a great opportunity to wed technology and real estate,” said Tamer Moumen, Crescent Ridge managing partner. “That just makes it a lot more exciting for us.”
Gramercy District was originally part of Comstock Partners’ adjacent Loudoun Station, but the two were formally split during a December Loudoun County Board meeting. Le’s 22 Capital Partners now control the 16 acres closest to the future Ashburn Metro station under a 99-year ground lease with the private landowner.
Comstock’s 26-acre Loudoun Station, already partially developed, will house one of two, 3,500-space Ashburn Metro garages. Commuters will have to pass through Gramercy to catch their train, and the Gramercy team knows it.
“We’re going to capture that traffic,” Le said. “Everybody’s going to have to walk through our development.”
Said Maggie Parker, Comstock spokeswoman: “We would like nothing more than to have a great front door. Success breeds success. We’re building a neighborhood.”
Gramercy District will be developed in multiple phases. Phase 1A, tentatively scheduled for delivery in the third quarter of 2018, calls for a 268-unit, seven-story luxury apartment building, 25,850 square feet of retail, rooftop amenities and five stories of structured parking. The connected Phase 1B, delivering as soon as late 2019, will include the Ashburn Metro station plaza, a 311-unit, seven-story apartment building, 5,000 square feet of retail and a high-tech business center.
In Phase 2, the developer has plans for an 85,000-square-foot hotel, a 350,000-square-foot office building, 330 more apartments and a seven-level parking garage.
Key to the project is the marriage of real estate and technology, Le said. Gramercy District will be a “smart city,” baking technology into every aspect of the project, from the building systems to the parking to the retail to the Internet of Things — essentially device-to-device communication. The development will be ideal for tech companies and startups, he said, as the IT systems will be in place before the first building even comes online.
While he brings his own tech expertise and comfort with complex large projects to the table, Le has surrounded himself with experienced developers to bring his dream to market. Thomas McConnell, a civil engineer and project manager with a 35-year career, is 22 Capital's executive vice president. Jack Reutemann, a former development officer and executive with Silverwood Cos., Crescent Resources and Horning Brothers, is the company's development manager. Polleo Group is the project architect, McGuire Woods LLP the land use attorney, Bowman Consulting the engineer and Malcolm Van de Riet, president of White Oak Properties, a consultant.
"Obviously, we’re very excited to have this kind of momentum for a project on our Metro," said Buddy Rizer, Loudoun's executive director of economic development, who recently met with 22 Capital Partners and Microsoft. "We really believe there’s great opportunity there and to have a company of that size and stature [Microsoft] to buy into the concept I think speaks volumes of the validity of Loudoun as a business market and what we’re trying to achieve around our Metro stations."