The deal is expected to close in Q2 2008. The buyer was not disclosed. Vornado did not return calls in time for deadline.
The trade works out to roughly $317 per sf, which is in line with the few class A offices that have traded in this very dense submarket. "There haven't been a lot of sales here to compare it against," Tonya Ginter, director of Research & Marketing for GVA Advantis, tells GlobeSt.com. She points to a sale in Feb. 2007 as a close comp: 2216 and 2222 Gallows Rd., a 106,961-sf package that sold for $305.72 per sf. "Despite the fact that the economy isn't doing so well, this shows that prices haven't dropped by that much, at least in this submarket."
New--and long awaited--development in the submarket is expanding supply. MRP Realty has told GlobeSt.com that it is planning a 500,000-sf office for roughly $250 million. Lerner Enterprises is building an 18-story 472,000-sf office tower at 1775 Tysons Blvd. in the Corporate Office Centre at Tysons II and B.F. Saul Co. is building an 11-story, 312,897-sf building at 7930 Jones Branch Dr.
Tysons Dulles Plaza I, located 1420 Spring Hill Rd., is a 155,100-sf building. Tysons Dulles Plaza II, a 159,000-sf building, is at 1430 Spring Hill Rd. The third building, Tysons Dulles Plaza III, is a 159,000-sf office at 1410 Spring Hill Rd.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
