There is growing optimism about office demand in Manassas, FitzGerald says.

Indeed, two similar buildings in the area, Linden Lakes and Sudley North, have undergone similar improvements and as a result have experienced increased leasing velocity. “There is a good velocity in the Prince William market from a leasing standpoint and as the renovations get underway we expect to see a great deal of interest in the building,” Spalding says in a prepared statement.

Sudley Tower has 10,000-square-foot floorplates, which are relatively rare in the area limited in the surrounding area and a differentiating factor for Sudley Tower. This property offers a unique opportunity in Manassas for tenants to occupy a full floor.

“Sudley Tower is a very well known, visible building in Manassas and as a result there was strong interest from investors who realized the potential of this asset,” said Cole Spalding.

MANASSAS, VA–An LLC backed by two individual investors recently acquired the tallest office building in Prince William County in a lender auction for $3.8 million. The transaction is telling as it points to improving fundamentals in this submarket. Namely, the Q4 2016 vacancy rate for Manassas was 11.6%. In Q4 2015 it was 12.3%.

Newmark Grubb Knight Frank's Larry FitzGerald and Cole Spalding facilitated the sale of the nine-story, 90,497 square foot building, called Sudley Tower, on behalf of the lender using the Ten-X auction platform.

“The buyers got a very good deal on this building,” FitzGerald tells GlobeSt.com. “They bought it at a very good basis and now are in a position to justify making the necessary renovations to add value.”

The owners plan to make capital improvements to the property in order to bring rents up to the low $20s per square foot from the current $20 per square foot, he says. In general rents in the submarket are in the $20 to $25 per square foot range. The building is currently 60% leased.

There is growing optimism about office demand in Manassas, FitzGerald says.

Indeed, two similar buildings in the area, Linden Lakes and Sudley North, have undergone similar improvements and as a result have experienced increased leasing velocity. “There is a good velocity in the Prince William market from a leasing standpoint and as the renovations get underway we expect to see a great deal of interest in the building,” Spalding says in a prepared statement.

Sudley Tower has 10,000-square-foot floorplates, which are relatively rare in the area limited in the surrounding area and a differentiating factor for Sudley Tower. This property offers a unique opportunity in Manassas for tenants to occupy a full floor.

“Sudley Tower is a very well known, visible building in Manassas and as a result there was strong interest from investors who realized the potential of this asset,” said Cole Spalding.