JV Wraps Up $38M Recap

ARLINGTON, VA-The $38 million recapitalization of Ballston Gateway, a new 137,000-sf office building, has closed in a recent deal between owner the Penzance Cos.’ Penzance Properties and joint venture partner American Realty Advisers. Ballston Gateway, not yet one year old, is a class A property that Penzance developed with Trammell Crow and Real Estate Capital Partners for $33 million. The eight-story building sits in the Ballston submarket of Arlington at 3865 Wilson Blvd., just three miles from Washington, DC’s central business district.

The transaction marks the first time the two real estate companies have joined forces on a project. “Both entities will benefit from our combined strengths and advancing our mutual interest in owning high quality properties that yield advantageous returns and represent stable value,” Penzance principal Julia Tolkan says. Ballston Gateway, which also features about 13,000 sf of retail space, boasts an occupancy level of 75%.