Two office buildings on either side of Fair Oaks Mall, totaling 280K SF, have been sold in a portfolio sale.

Silverline Equities, an investment firm founded by WashREIT alum Anthony Chang and local real estate veteran Barry Bass, acquired the Greenwood and Oakwood office properties in Fairfax County along Lee Jackson Memorial Highway for a combined price of $12.5M, or $45 per SF, according to a press release shared first with Bisnow.

It plans to keep the 153K SF Greenwood property at 12015 Lee Jackson Memorial Highway as office space.

The Oakwood property was simultaneously sold to Fairfax-based developer JR Real Estate Group, which plans to reposition it as residential. That 130K SF property sits at 11781 Lee Jackson Memorial Highway. Chang told Bisnow in an email that Silverline provided financing for the Oakwood purchase but doesn't have an ownership stake.

He said Oakwood's offset position from the roadway and its three- to five-year tenant roll make it a better fit for residential. It's also adjacent to a pond.

“We see tremendous long-term value in this location, particularly as the reimagining of Fair Oaks Mall takes shape,” JR Real Estate Group Managing Principal Saif Rahman said in the release.

JR Real Estate will continue doing short-term, three-year leases as it entitles the site, Chang said.

As for Silverline’s acquisition, Chang said he believes Greenwood will benefit from the decreasing supply of office in the region.

“We think the best thing we can do is to invest the smart dollars to just bump things up a little bit, but we don't have to go all in with the repositioning because buildings are already well maintained and they have good presence because of that location,” he said.

Alternative asset manager Kawa Capital was the ground owner of the properties, a Kawa spokesperson told Bisnow in an email.

Brandywine Acquisition Partners LP had previously owned the properties, which it bought in 2001 in a multiparcel sale for a total of $107.2M, according to Fairfax property records.

Prior to closing the transaction, Silverline executed a 70K SF lease renewal and expansion with the Fairfax County Board of Supervisors and said it will continue to lease the building to office tenants. The building is 60% leased, Chang said.

He said Silverline plans to infuse $6M into the property, about half of which will go toward leasing costs.

The 1.7M SF Fair Oaks Mall is owned by Olshan Properties, and its anchors include JCPenney and Macy’s.