RESTON, VA–A handful of office buildings are under contract or in negotiations, sources tell us. This should not be surprising: Northern Virginia's fundamentals are flourishing, a trend that is expected to continue thanks to the recent Defense-friendly budget deal.
Last year, Northern Virginia experienced job gains of 20, 500, which was down from the 32, 000 jobs added in 2016, Cushman & Wakefield noted in its Q4 report on the region. But, it added, NoVA accounted for all of the growth in financial sector employment in the Washington DC area — a total of 3,600 new jobs — and for two-thirds of the job growth in the professional and business services category with 9,200 jobs year-over-year.
With this as background let's look at some of the deals that are pending. A source tells us that JBG Smith is selling its 290,247-square foot Summit 1 & II offices in Reston to Brookfield Asset Management for about $95 million or $327 per square foot. The buildings are fully occupied by such tenants as Noblis, SAP. The last time the complex traded was in 2011 for about $50 million.
JBG Smith is also selling another complex in Reston, the same source tells us: Commerce Executive III, IV & V for $122 million or $292 per square foot. The Meridian Group is the buyer of the 418,000-square foot complex, which is about 87% occupped. The last time it sold was in 2000 for $79 million.
In another deal a JV between Clemente Development and Khaled Juffali is buying 8590 Leesburg Pike in Tysons Corner from BP Realty for about $26 million or $789 per square foot. Our source says that the 32,960-square foot retail building will be demolished.
Finally, we've heard that the Westin Tysons Corner hotel has sold to a JV between Merrimac Ventures, Sefira Capital and Driftwood Acquisitions & Development LP.
Postscript: Last week we reported that PRP acquired 4900 Seminary Rd. and 4825 Mark Center Dr. , in Alexandria from CIII. We've since learned they traded for around $40 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.
