Tiny Building Brings in Big Dollars

ARLINGTON, VA-The diminutive stature and two-decade old existence of the building at 745 S. 23rd St., did not hinder its appeal, as is evidenced by its recent sale for $203 per sf. Blackacre LLC put the15,500-sf property on the market through Advantis/GVA and has now walked away with about $3.1 million from the new owner, JER Crystal LLC, a new investment fund partnership established by JER Partners. The property’s 2004 assessed value is just over $2.1 million.

Blackacre developed the three-story building at 745 23rd St. in 1983, and has since renovated the property, maintaining its class B status. Its location in the Crystal City submarket of Arlington, the fact that it is 100% leased, and the area’s potential for growth, add to its appeal. “The combination of income, proximity to major employment and amenities, abundant parking and walking distance to the Metro provides JER an excellent opportunity for value creation and appreciation,” JER’s Cia Buckley says. “The major renovations and retail development taking place in Crystal City, as well as the new residential development that has occurred, demonstrate the continued attractiveness of this submarket for JER.”