Typically both of these parties tend to invest in core assets, explains Robert Greer, managing director at ING Clarion. "But the opportunities were so good with this building, that we though the value-add component would complement the portfolios very well," he tells GlobeSt.com.
The building is currently 84% occupied by Verizon, which is planning to vacate the building over a period of years. The new owners will invest about $2 million in a rehab to attract new tenants, Greer explains.
"The bones of this building--its structure and finish--are of a quality not usually seen in this type of building," he says. "Once our rehab is complete it will be very competitive in the market."
Completed in 1991, the building features a copper mansard roof cap, marble lobby, granite skin with ribbon glass facade high-speed elevators, 10-foot ceilings, redundant telecommunications fiber, and a five-and-a-half story parking garage. The planned upgrades include restroom renovations and refurbishment of the elevators.
Greer also says the investors liked Fairview Park itself, which has a good reputation in Northern Virginia and is easily accessible to most of the major highways and thoroughfares as well as the Dulles Toll Road. One of the investors already owns at least one building in the park; the other holds assets in Tyson's Corner.
"I have been active in Northern Virginia for 20 years and have always thought it would be a great investment to own a building in this park," Greer says. "Now we do." Asking rates for the building will be in the high 30s per sf, he adds. Grubb & Ellis is the property manager for the building. The leasing agent is Jones Lang LaSalle.
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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.
