According to comps, DC real estate investor and developer Ralph Dweck acquired the 555,707-sf building from Carr Real Estate. It is one of two buildings that make up the Stafford Place complex.
The building is fully leased by the National Science Foundation, which also has leased an additional 60,000 sf in the adjacent building located at 4121 Wilson Blvd. Tonya Ginter, director of research at GVA Advantis, notes the building fits Dweck's investment profile--namely class A fully leased buildings. He also owns the adjacent building--which is a much smaller structure at 175, 058 sf, which he acquired last May for $73.5 million, or $419.86 per sf.
When asked about the drop off in price over a period of a year, $358.66 per sf versus $419.86 per sf, Ginter responds that the DC market is starting to see a slow down in investment sales from a year ago. "But I wouldn't say it is a significant decrease."
The Ballston submarket is faring very well, though, she adds. One of the closest Northern Virginia suburbs to DC, investment sales activity remains very strong. 1005 N Glebe Rd., another building in the area, traded in September for $374.50 per sf; a $51.4-million deal. Boston's TA Realty purchased the building from TIAA-CREF, according to local comps.
The Rosslyn-Ballston has a tight vacancy rate of 6.6%, she notes, making it one of the healthiest markets in Northern Virginia. There is 1.6 million sf currently under construction, of which 67% has already been leased.
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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.
