FAIRFAX, VA-Long & Foster has sold its 91,000-sf headquarters to T & M Fair Oaks Venture LLC, a JV of local investors that specialize in the conversion of office buildings into condos, for $20.3 million. The residential retail company will remain in its old headquarters, located at 11351 Random Hills Rd. here, until work on its new facilities in Chantilly is complete.
As part of the deal Long & Foster arranged a short-term sales leaseback with the buyer, according to Bill Prutting, first VP at CB Richard Ellis. Prutting, in the company's Investment Sales Group and Jeff Roman and Bill Kamp in the firm's Northern Virginia office represented Long & Foster in the transaction.
Long & Foster occupies the entire Random Hills building. Its new diggs, at The Ellipse at Westfields is under construction and is expected to deliver in the first half of next year. While it waits for it to be finished it is paying a rental rate that is roughly the equivalent of about a 9% return on the purchase price, Prutting says.
Once Long & Foster moves out T & M Fair Oaks Venture plans to begin a $2 million or so program of capital improvements, according to Prutting, to convert the building into office condos. Once complete these will likely market in the $375 to $400 per sf range, although he adds, “no official prices have been set yet.”
The building is well located for an office condo–or indeed, an office building–in this submarket. It is located near the Fairfax County Government Center and Fair Oaks Mall at the Intersection of 1-66 and Route 50.
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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.
