Fairfax Office Building Sells For $55M
An office building in the D.C. suburbs has sold for over $55M after undergoing a major renovation.
It didn't disclose the seller or price, but property records show the asset was sold by an affiliate of Prudential Financial and the deal closed Oct. 5 for $55.3M. The Prudential affiliate had owned it since 2006, when it acquired it for $68.7M, property records show.
The 10-story, 260K SF office building is 88% leased to four tenants, including government contractors CGI Federal and Alion Science & Technology. The 8.4-acre property has two detached parking garages and a surface lot.
The previous owner recently completed a $6.4M renovation, according to Newmark. The renovation included an upgraded lobby, modernized elevators, a new fitness center, and an outdoor lounge area with table and bar seating. The building also has a first-floor café.
The property sits near the interchange of Route 66 and the Fairfax County Parkway. It is less than a quarter-mile from a Whole Foods-anchored shopping center and the Hilton Fairfax hotel, and it is about 2 miles from the Fair Oaks Mall.
Despite the challenges facing the office sector, Newmark said the Northern Virginia office market has remained attractive to investors because it has landed major expansions from Fortune 500 companies such as Microsoft, Google and Amazon.
"Multifamily and industrial may currently be the most favored asset classes nationally, but the positive storylines for office in Northern Virginia are too powerful to ignore, particularly when an asset of 12601 Fair Lakes’ quality becomes available for sale," Newmark Executive Managing Director Jud Ryan said in a release.
He brokered the deal along with Newmark Executive Managing Director James Cassidy.