Invesco Sells Arlington LEED Platinum Office Building For 34% Less Than It Paid
Atlanta-based Invesco Advisors sold a 10-year-old office building in Arlington for $30M less than its previous price, an indication of how the office market has weakened.
The firm sold the 134K SF building at 1776 Wilson Blvd. — Arlington's first LEED Platinum building — to an affiliate of Oaktree Capital in October for $59.5M, property records show. Invesco bought the building for $90.3M in 2014.
Oaktree declined to comment, and Invesco didn't respond to a request for comment.
The property's new owner kept Lincoln Property Co. on board to manage leasing, LPC Vice President Correll Caulfield confirmed to Bisnow. He said the property is 82% leased, including its fully leased ground-floor retail.
When it changed hands less than a decade ago, 1776 Wilson was 90% leased, the Washington Business Journal reported in 2014. Skanska developed the property and delivered it in 2012 before selling it to Invesco.
Oaktree is planning "cosmetic renovations" to update the property's fitness center and rooftop terrace, Caulfield said. The new owner is also replacing a first-floor office suite with a new tenants-only game room slated to feature amenities like foosball, a putting green and shuffleboard.
"That just feels like a good concept for the suite," Caulfield said. "We're just kicking off that project right now."
The property is located along the Rosslyn-Ballston corridor, which has struggled to attract and retain office tenants since the pandemic began. The submarket's Class-A vacancy rate was 23.4% in the fourth quarter, 3 percentage points above the Northern Virginia average, according to data from Colliers.