(Read more on the industrial market.)
STERLING, VA-New Boston Fund Inc. has acquired a two-building office asset here along with 20 or so acres of developable land. It acquired the complex, called the Office Campus at TransDulles Centre, from Philadelphia-based BPG Properties Ltd. at an undisclosed price.
The 26.5-acre purchase includes two class A office buildings that total 149,000 sf as well as 17.7 acres of land that can accommodate approximately 220,000 sf of office/flex or several industrial buildings. It is located in the TransDulles Centre Business Park in Loudon County, between Rte. 28 and Rte. 7, just north of Dulles Airport.
Patrick Shooltz, regional director for New Boston, tells GlobeSt.com that the company will most likely build four single-story buildings that target the small-bay industrial/service industry niche. "We see this developing in multiple phases with the first building designed to accommodate service industry operations and the last most likely an office building," he says.
"The company expects to spend roughly $30 million developing the four properties." The service industry–a subsector of the industrial sector that correlates strongly to a surge in residential growth–is a new focus for New Boston in the MidAtlantic, Shooltz adds. This development will be the company's first ground up project of such assets, he says.
The two buildings on the property were built in 2000 and 2001 and feature two-story atrium lobbies with marble, granite and wood finishes. One is 100% vacant in shell condition. New Boston expects to spend $30 per sf to $45 per sf on tenant work for the 75,000-sf structure, Shooltz says. The other building is 95% leased. Lincoln Property Co. will provide leasing and marketing services for the existing office buildings.
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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.
