CHANTILLY, VA—At the end of last year, JLL's Bill Prutting made the argument that in 2016 the Chantilly-Westfields-Route 28 submarket could see a revival. So far, the year is off to a good start for this piece of Northern Virginia and if the pace of deals continues, Prutting could well be proved correct by year's end.
Two more deals joined the handful of transactions that have occurred here in recent weeks. UNICOM Global acquired Washington Technology Park I & II at 15000 and 15010 Conference Center Dr., for $52.5 million.
Separately, Northridge at Westfields, a three building office, warehouse and R&D complex with additional land parcels for potential future development, was acquired by Strategic Capital Partners for $17.2 million. CBRE brokered both transactions.
In the first deal, the buyer has already rebranded the buildings as UNICOM Technology Park I & II, and plans for the 673,000-square foot buildings to become the future regional headquarters of many of its more than 40 corporate entities.
The buildings, which are located within Westfield Conference Center Park, are currently occupied by Allstate Insurance and Deloitte.
Michael Blunt, Randall Heilig, Olesya Puente, Isaac Breen-Franklin, Jeffrey Roman and Malcolm Schweiker of CBRE represented the seller, Corporate Office Properties Trust.
Northridge at Westfields consists of 99,464 square feet of space with 12 acres of land approved for up to 168,000 square feet of further development. The three buildings are 100% leased to TASC, JSI Telecom, SOC, Aerospace Corporation and Protection 1 Alarm.
With these two deals it appears that Westfields is edging into recovery mode. Other transactions include Park Stone Place, a 75,838-square-foot building, four-story office building in the Westfields Business Park that sold for $21 million, or $237 per square foot. The building is fully leased to Accenture Federal Services, which was the appeal for EPIC US LLC, according to the Avison Young brokers who represented the seller, a local investor.
CBRE's Washington DC Institutional Properties office is also closing deals in the market. Over the past two years, it has completed five transactions in the Route 28 corridor for a combined sales volume of approximately $500 million.
Chambers Street Properties has put the former AOL headquarters building on the market after having signed on Comcast for 30,000 square feet. Granted, it's not in the heart of Westfields or Route 28, but in Loudoun County. However its sale could be a ringing endorsement for tenants and investors that the suburbs are safe again for office.
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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.
