RESTON, VA–Penzance and a global real estate investment manager are selling a three-building, 266,000-square foot office portfolio here that, according to word on the street, has a whisper price of $55 million to $60 million. Transwestern is marketing the portfolio, which consists of 10700 Parkridge Blvd. and 11107 – 11109 Sunset Hills Road.
The portfolio is 90% leased to a tenant base that has an average remaining term of more than four years. Investment-grade tenants account for 26% of the portfolio's occupancy. In addition, rents are 7% below the market rate.
The Reston office market is one of the few submarkets that has seen real rent growth over the last two years, Gerry Trainor, executive managing director of Transwestern's Mid-Atlantic Capital Markets Group, tells GlobeSt.com. Vacancy rates have been falling since 2012 and are now below the 20-year average for the first time since 2004, when rents rose 32% during the next three years, he said.
Trainor said interest in the portfolio is strong; the offer was sent out this week and Trainor has received 50 confidentialities. “We'll probably end up with about a 100, 120.”
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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.
