There is a high level of demand now for office/flex properties in this submarket as well as retail assets, according to Rich Vaaler of Sperry Van Ness/Vaaler Real Estate in Leesburg. "Anything above $10 million is very sought after," the seller's broker tells GlobeSt.com. Properties in the $5-million to $10-million range also are attracting suitors although not as many. The interest in office/flex drops dramatically for product below $5 million. "There are assets sitting on the market for months in this range," says Vaaler, who teamed with Jim Meisel and Dek Potts of Advantis to represent the seller.
There were five investors competing for 741 Miller Dr. SE, Vaaler says. As part of the transaction, Gelman Cos., assumed about $10 million in debt, he adds.
The building, which is located at 741 Miller Dr. SE, is well situated near the Leesburg Executive Airport and Dulles Toll Road. It sits on 6.08 acres and is fully occupied by seven tenants, including Curtiss-Wright, Eurotherm, Primedia, and Loudoun County. According to Sperry Van Ness/Vaaler Real Estate, many of the tenants have leases well below market, which means upside potential for the new owner as their leases turn over.
Comparable sales include Dulles Business and Cargo Center in Sterling, a 196,844-sf building that traded for $16 million; Beltway 50, the 101,741-sf Building 2 in Lanham, MD that sold for $11.7 million; and Ashburn Technology Park, a 54,120-sf property that traded for $10.9 million.
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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.
