PGP seeks to strike purchase option in SEC headquarters search

Property Group Partners has accused the General Services Administration of overstepping its bounds in the search for a new Securities and Exchange Commission headquarters by requiring bidders to include a purchase option with their proposals.

An affiliate of PGP, in a protest filed earlier this month with the U.S. Government Accountability Office, claims a House oversight committee did not explicitly authorize the federal government’s real estate arm to factor the cost of a purchase option into its evaluation of bids for a new SEC lease of up to 1.3 million square feet. It raised a similar argument with the GSA before bids were due in September, but the agency rejected PGP’s argument.

The stakes are high for PGP, which is pulling in about $58.8 million a year in rent from the SEC’s leases at 100 F St. NE, 600 Second St. NE and 700 Second St. NE. The leases at Station Place, as the development is known, are set to expire between April 2019 and March 2021. Including the purchase provision…

Read the full story from the Washington Business Journal.

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