Fully Leased Office/Flex Trades for $15M

LEESBURG, VA-A Washington, DC-based real estate firm has acquired a fully occupied office/flex building for $15 million at a 7.15% cap rate. Two years ago, Bethesda, MD-based Minshall-Stewart Properties bought the 87,848-sf, 19-year-old asset for $12 million.

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.