Clarendon: KBS' Latest Buy
KBS REIT III continues its buying spree in the DC region, this time scooping up 3003 Washington Blvd in Clarendon for $149M. SVP Stephen Close says the 211k SF Class-A building may be one of the last opportunities for the company to buy a trophy building there. So few Class-A buildings exist in the neighborhood, with most new developments focused on residential. The building, completed in 2014 and 95% leased with companies like CNA Corp., and the Common Application, recently won NAIOP-Northern Virginia’s “Best Building” award in the speculative office 7-14 stories category.
Stephen, who’s in charge of the Mid-Atlantic region, tells us KBS also recently did deals in St. Louis and Emeryville, CA. He says leasing markets in the DC region are slower and “pretty far behind” others around the country. So it’s still a tenants’ market but it’s strengthening. Areas like Clarendon, certain spots along the Dulles Toll Road (above), and DC are performing better than other NoVA submarkets, and better than suburban Maryland, he says.