One positive sign for the submarket came last year when Abt Associates leased 155,000 square feet at Executive Plaza.

Executive Plaza, which is next door to Goodstone's purchase, is a two-building 328,457-square foot office complex that also housed the National Cancer Institute. It traded around the time of NCI's departure for $36.75 million and the new owners promptly embarked on a renovation.

“There is more activity than people realize in this submarket,” Durr says.

This is Goodstone's strategy for the building: It acquired it for $9.5 million and plans another $10 million in renovations, primarily in amenities to attract employers staffed with Millennial employees. When the renovations deliver Goodstone will lease the space at competitive asking rates in the upper 20s, low 30s per square foot. (For comparison, Bethesda's asking rates are in the upper 30s, lower 40s per square foot).

The company is just about to sign on an architecture firm for the renovations, which are expected to deliver in April 2018. Goodstone has selected Cushman & Wakefield for the property management and is currently interviewing brokerages for the leasing.

Once the building is stabilized, Goodstone will consider selling, but that will depend on market conditions, Durr says.

NORTH BETHESDA, MD–The Washington, DC-based Goodstone has acquired the vacant office at 6116 Executive Blvd. out of special serving, paying $9.5 million for the 217,732 square foot, eight-story building that once was home to the National Cancer Institute.

Indeed during the building's heyday some twelve years ago it traded for $81.4 million. The departure of the NIH office in 2013, however, was an understandable blow to this neighborhood.

Goodstone, though, believes this particular piece of North Bethesda is prime for a resurgence.

It is a 12 minute walk to the White Flint metro station and an eight minute walk to Pike and Rose, CEO Stephan Durr tells GlobeSt.com. Most importantly, that walk is on Executive Boulevard — not the traffic-congested Rockville Pike. Durr predicts that as Bethesda gets more crowded — especially when Marriott starts its headquarters project — companies will look to North Bethesda for more space and a little peace and quiet.

One positive sign for the submarket came last year when Abt Associates leased 155,000 square feet at Executive Plaza.

Executive Plaza, which is next door to Goodstone's purchase, is a two-building 328,457-square foot office complex that also housed the National Cancer Institute. It traded around the time of NCI's departure for $36.75 million and the new owners promptly embarked on a renovation.

“There is more activity than people realize in this submarket,” Durr says.

This is Goodstone's strategy for the building: It acquired it for $9.5 million and plans another $10 million in renovations, primarily in amenities to attract employers staffed with Millennial employees. When the renovations deliver Goodstone will lease the space at competitive asking rates in the upper 20s, low 30s per square foot. (For comparison, Bethesda's asking rates are in the upper 30s, lower 40s per square foot).

The company is just about to sign on an architecture firm for the renovations, which are expected to deliver in April 2018. Goodstone has selected Cushman & Wakefield for the property management and is currently interviewing brokerages for the leasing.

Once the building is stabilized, Goodstone will consider selling, but that will depend on market conditions, Durr says.