The first buyer was planning a multifamily development and “missed the market” as Blackman said.

“He was trying to build an ultra-high-end apartment community in a market where there isn't a lot of high-end multifamily around it. Shame on us for not recognizing that and deciding to move forward with him.”

The second buyer was an owner/user that wanted the building as is, but ultimately decided not to move forward.

In this third run at offloading the asset, the contract is also contingent on the buyer's ability to obtain certain zoning entitlements. Blackman said the prospective buyer has “very strong relationships in the township where the property is located, and have credibility in kind of managing through the rezoning process.”

Also, he added, “a big portion of the entitlement was done the last time around. The big piece was getting the town plan reconfigured to allow for a mixed use program. So there's a lot less heavy lifting that needs to be done here. And I think the most important thing is I think the economic analysis for the current buyer is more appropriate for the asset. So knock on wood, we're optimistic.”

The REIT didn't indicate which building was under contract. A look at its portfolio suggests the property in question could be Pender Business Park in Fairfax, VA, a four-building portfolio totalling 170,940 square feet.

A call to the REIT was not returned in time for publication.

FALLS CHURCH, VA–The Newton, MA-based Government Properties Income Trust has found a buyer for an office building it owns in Falls Church, VA. The 164,746-square foot building, which has a net book value of $12.3 million, is under contract for $14.8 million, excluding closing costs, president and COO David Blackman told listeners during the REIT's first quarter earnings call. The deal is expected to close in the first quarter of 2017, subject to the buyer's due diligence and other factors.

The prospective buyer is a group looking at what Blackman called a market-appropriate mixed-used development. He described the group as a long-time Washington, DC-area-based developer.

Third Time The Property Has Been Under Contract

This is the third time the property has been under contract, each time with a different use in mind.

The first buyer was planning a multifamily development and “missed the market” as Blackman said.

“He was trying to build an ultra-high-end apartment community in a market where there isn't a lot of high-end multifamily around it. Shame on us for not recognizing that and deciding to move forward with him.”

The second buyer was an owner/user that wanted the building as is, but ultimately decided not to move forward.

In this third run at offloading the asset, the contract is also contingent on the buyer's ability to obtain certain zoning entitlements. Blackman said the prospective buyer has “very strong relationships in the township where the property is located, and have credibility in kind of managing through the rezoning process.”

Also, he added, “a big portion of the entitlement was done the last time around. The big piece was getting the town plan reconfigured to allow for a mixed use program. So there's a lot less heavy lifting that needs to be done here. And I think the most important thing is I think the economic analysis for the current buyer is more appropriate for the asset. So knock on wood, we're optimistic.”

The REIT didn't indicate which building was under contract. A look at its portfolio suggests the property in question could be Pender Business Park in Fairfax, VA, a four-building portfolio totalling 170,940 square feet.

A call to the REIT was not returned in time for publication.