CHANTILLY, VA-Some two weeks after MRP Realty and Rockpoint Group closed on Plaza East for approximately $30 million, the new owners are finding that tenants, which had avoided the two-building office complex due to its previous owners’ financial difficulties, are now interested in tours. That is welcome news, given the poor fundamentals in the Chantilly market and Plaza East’s unfortunate delivery timing.
When the 246,800-square-foot complex delivered in 2007, there were about 14 competing buildings also coming on line, MRP principal Zack Wade tells GlobeSt.com. “The majority of those have been leased up now.” There are other trends in Plaza East’s favor, he adds, such as the flight to quality by tenants in submarkets where there is a lot of space availability.
MRP Realty and Rockpoint Group acquired the buildings, developed by Tishman Speyer Properties, from lender General Electric Co. after they were put up for auction. “Tenants that would have found value in the project had been leaving it out of tours because of the situation,” Wade says. Since the building traded, MRP has given two tours.
Plaza East is located in Westfields Corporate Center. Designed by architect HOK Inc., features include flexible floor plates and a lobby with limestone slate floors, glass walls and stainless steel details. Wade says once tenants begin to lease up, the company plans to build out additional amenities including a deli and fitness center. Asking rates are in the high $20s per square foot. Grubb & Ellis’ Andy Klaff and Charles Dilks have been tapped to handle the leasing for the property.
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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.
