RESTON, VA–RN Golf Management has put Reston National Golf Course, a 168-acre active site, on the market. The property is being marketed by ARA Newmark on an 'as is' basis and with an eye towards low to medium density residential development.
A source close to the deal tells GlobeSt.com that the property is expected to sell for between $25 million to $35 million.
GlobeSt.com asked Mark Anstine, ARA Newmark's executive managing director for land services, for comment and he declined to answer except for this rather bold and sweeping statement: “We think it is the best residential development opportunity with the highest return potential of any property currently on the US market.”
One reason for Anstine's extreme confidence could be Reston National's zoning, which dates from the 1970s and could be argued to be 'by right' — an almost forgotten zoning regulation that means a plan for development needs only to receive administrative approval as opposed to political approval.
However the zoning status is arguably still up for debate. In the mid 1990s the owners asked for a zoning opinion and was told it was 'by right'. Then some five years ago the Fairfax County Board of Zoning Appeals determined it was 'by right' when the owners asked for another opinion. A community group appealed that decision to the Circuit Court, which threw out the opinion on the grounds that because no plan had been submitted there could not be an opinion.
The working theory by the seller and ARA Newmark is that the buyer will develop a plan and submit it for zoning, hopefully securing a 'by right' status.
Community groups challenging the decision disagree and say that the County Board is on their side.
“The zoning land use designation is open space. There is no 'by right' residential development,” a spokesperson for Rescue Reston tells GlobeSt.com.
A call to the Fairfax County Board of Supervisors was not returned in time for publication.
The source who priced the possible sale of Reston National also feels optimistic about a favorable zoning decision. “I think once the buyer submits a plan and gets it approved the property could easily be worth more than $200 million.”
RESTON, VA–RN Golf Management has put Reston National Golf Course, a 168-acre active site, on the market. The property is being marketed by ARA Newmark on an 'as is' basis and with an eye towards low to medium density residential development.
A source close to the deal tells GlobeSt.com that the property is expected to sell for between $25 million to $35 million.
GlobeSt.com asked Mark Anstine, ARA Newmark's executive managing director for land services, for comment and he declined to answer except for this rather bold and sweeping statement: “We think it is the best residential development opportunity with the highest return potential of any property currently on the US market.”
One reason for Anstine's extreme confidence could be Reston National's zoning, which dates from the 1970s and could be argued to be 'by right' — an almost forgotten zoning regulation that means a plan for development needs only to receive administrative approval as opposed to political approval.
However the zoning status is arguably still up for debate. In the mid 1990s the owners asked for a zoning opinion and was told it was 'by right'. Then some five years ago the Fairfax County Board of Zoning Appeals determined it was 'by right' when the owners asked for another opinion. A community group appealed that decision to the Circuit Court, which threw out the opinion on the grounds that because no plan had been submitted there could not be an opinion.
The working theory by the seller and ARA Newmark is that the buyer will develop a plan and submit it for zoning, hopefully securing a 'by right' status.
Community groups challenging the decision disagree and say that the County Board is on their side.
“The zoning land use designation is open space. There is no 'by right' residential development,” a spokesperson for Rescue Reston tells GlobeSt.com.
A call to the Fairfax County Board of Supervisors was not returned in time for publication.
The source who priced the possible sale of Reston National also feels optimistic about a favorable zoning decision. “I think once the buyer submits a plan and gets it approved the property could easily be worth more than $200 million.”
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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.
