Brookfield Sells Reston Office Complex For $53M
Brookfield has offloaded a pair of 2000s-era office buildings that it owned for nearly two decades at its Halley Rise development site in Reston.
The Canadian investment giant sold One and Two Halley Rise, a pair of six-story office buildings each weighing in at 190K SF, for $53M.
Boston-based CrossHarbor Capital Partners purchased 12000 and 12018 Sunrise Valley Drive in July, according to Fairfax County property records and Cushman & Wakefield’s Northern Virginia third-quarter office report.
WS Development Senior Vice President Yanni Tsipis, a major player in the Boston CRE market, appears as a contact on the building's website, but it isn't clear what the firm's role is in this deal. As of June, JLL had been listed as the building's contact, according to archived versions accessed using the Wayback Machine.
WS and CrossHarbor have partnered on several acquisitions in recent years, but this appears to be their first joint venture in the D.C. region.
Tsipis didn't immediately respond to Bisnow's request for comment. CrossHarbor didn't respond to a request for comment.
Although the buildings are the same size, Two Halley Rise, which underwent a renovation in 2023, sold for nearly four times its twin's price. Two Halley Rise traded for $42.7M, while One Halley Rise sold for $10.5M, according to property records.
A Brookfield spokesperson said the firm has “laid the groundwork for a vibrant mixed-use neighborhood” at Halley Rise, where two multifamily buildings with a Wegmans and other retail have delivered in recent years.
“The successful sale of these office buildings builds on that momentum and reflects our disciplined approach to capital management as we turn our focus to new opportunities,” the spokesperson told Bisnow in an email.
Brookfield has had plans since at least 2009 to build out the 36-acre site, which sits about a half-mile from the Reston Town Center Metro station, though they have transformed over the years.
The vision was initially to create an office-oriented development, but in 2017, the developer pivoted to a more mixed-use concept.
As of 2023, the plan was to build 1.9M SF of office, 1,600 residential units, 246K SF of retail and 5 acres of green space, according to a marketing brochure.
Just a few pieces of that vision have been delivered.
In 2018, Brookfield signed Wegmans to anchor the first apartment building, branded as The Edmond. It broke ground on the 352-unit building in 2019, delivered it in 2021 and then sold the property to Harbor Group International last August for $133M.
On another portion of the site, Akridge and The Meridian Group completed the 480-unit The Arbor at Halley Rise building this summer.
Brookfield acquired the One and Two Halley Rise office buildings in 2006 through its acquisition of Trizec Properties and Trizec Canada with partner Blackstone Group.
UnitedHealthcare is a tenant at Halley Rise Two, according to its website.
One Halley Rise is fully available, according to the property's website. Fannie Mae leased the entire One Halley Rise building in 2015, but the lease expired in 2022.
Brookfield has offloaded other office assets in the region this year, including the Edison Place building in Downtown D.C. in April for $175M and the nearby Victor Building for $153M in June.
