A 1980s-era office park in Reston that Bridge Investment Group acquired seven years ago and then renovated is now back on the market.
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JLL is marketing the three-building Makers Point property at 11130, 11180 and 11190 Sunrise Valley Drive for sale on behalf of the owner, according to a marketing flyer. Property records show Bridge Investment Group bought the property in 2018 for $54M.
The flyer describes it as a "lender-driven sale" and says the property is 56% leased. JLL and Bridge didn't respond to Bisnow's requests for comment.
The property's occupancy has fallen from around 85% when Bridge acquired it, according to reports at the time. JLL's flyer says the owner has invested $9.7M into upgrading the asset since 2018.
The 265K SF property has 24 tenants with a weighted average lease term of 3.6 years, according to JLL's flyer. Tenants include real estate firm Orr Partners, cybersecurity firm XTec Inc. and Potomac Financial, according to their websites.
Sitting on a 12-acre site, the property could present an opportunity for a buyer to redevelop it to multifamily or another use — a common strategy in the area — but JLL's marketing flyer focuses on its future as an office asset.
The property could benefit from a tightening in the market as other nearby office parks are redeveloped to other uses, according to the flyer. It says 2.5M SF of office is slated to be removed from the inventory in Reston and over 12M SF across Northern Virginia, "paving the way in the coming years for reduced vacancy."
"Makers Point has also already seen leasing demand from tenants that are being displaced by redevelopment," JLL's flyer says. "Given that only one office building in all of northern Virginia is currently under construction, these trends will further stabilize the leasing market."
One of those redevelopments sits about a mile to the east of Makers Point at 1835 and 1851 Alexander Bell Drive, where the owner filed plans in June to turn the office property into townhouses. Also about a mile away, the building at 1821 Michael Faraday Drive was proposed for a multifamily redevelopment in July.
These types of office-to-residential redevelopments are also occurring in nearby Herndon and Tysons. Developers said last month at Bisnow's Fairfax County event that the county has "way too much commodity office" and more of it needs to be razed to help balance out the market.
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