The building, which delivered last year, is 28% leased, with DRS Technologies, a supplier of defense electronics systems, having inked a contract to occupy 53,000 sf in the building.
That lease is one proof point to MGP Realty that this value ad investment play will be competitive in the Herndon submarket. "It demonstrates its leasability," Andrew Eshelman, principal with MGP Real Estate tells GlobeSt.com. "Furthermore, we have a great leasing team in Jones Lang LaSalle."
Other competitive selling points for tenants, he adds, include a high quality design, is close to Dulles International Airport and, as the tallest building in Dulles Toll Road corridor, has great access and visibility.
Monument III is the fourth building developed by Monument Realty and Apollo in the 94-acre Worldgate complex.
"We started developing it in summer 2005, completed it last year and sold it now--just as we originally planned," John Jacobsson, Apollo managing partner tells GlobeSt.com. "We wanted to build it and deliver it in time to get out ahead of what we saw as growing market demand for space here and rising rents. The timing is perfect--I think the buyers will do well with the property."
Apollo's attention is now more on the District itself, where it recently acquired office properties in up and coming submarkets. The firm purchased the 600,000-sf Transpoint Building for about $170 million, as well as the 291,838-sf office building at 1200 First St. for $94.5 million.
"We are looking at more redevelopment within the District now," Jacobsson says, declining to provide further details. Except one: "We are real fans of NoMa, the area where we recently acquired Capital Plaza 1."
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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.
