Meridian Group Acquires 2 Tysons Office Buildings For $58M

The office building at 1951 Kidwell Drive in Tysons.
Courtesy of The Meridian Group
The Office Building At 1951 Kidwell Drive In Tysons.

The developer behind The Boro is continuing to grow its portfolio in Tysons.

The Meridian Group announced Thursday it acquired the office buildings at 1951 Kidwell Drive and 1953 Gallows Road for $58.3M. Eastdil Secured brokered the deal.

The buildings were sold by affiliates of Colony Capital, property records show, and the sales closed March 27. The buyer did not disclose details on its acquisition financing, but Meridian Chief Investment Officer Gary Block told Bisnow it was challenging to get the deal closed during a pandemic.

"It was a very difficult transaction for all parties involved," Block said. "We're happy we got it done. The sellers are happy and the lenders are happy, but it took a lot of coordination among the three groups and perseverance."

The buildings are both eight-story, Class-B office buildings. The Kidwell Drive building is 173K SF and is 75% leased. The Gallows Road building is 257K SF and is 55% leased. The properties sit near the intersection of Route 7 and The Beltway, about a half-mile from the Tysons Corner center mall.

The buyer plans minor renovations, but it intends to keep them in the Class-B segment of the market and try to increase their occupancy, Block said. He said The Meridian Group decided to buy the properties because they complement the firm's existing Tysons properties, including The Boro and other nearby office buildings.

"We have a substantial Tysons portfolio, and we think these buildings fit very well into the existing Tysons portfolio," Block said. "We think they're ideal for cost-concious tenants that may be priced out of our Boro office buildings."

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Washington, D.C. Newsletters
Related Stories

Downtown Conversion Lands Construction Loan: The D.C. Deal Sheet

JPMorgan's Chicago Office Renovation Costing Bank Over $800M, Dimon Says

BXP Lands Equity Partner For Madison Avenue Office Project

High-Profile CBRE Chicago Exits Continue As 3 More Leave For Cushman & Wakefield

Foreclosure Suit Filed At Stalled Penn Plaza Life Sciences Project

Chicago Office Tower Sells For $550M To Zara Founder In Blockbuster Deal

Rents Smash Expectations At GPE

Fairfax Pays $23M For Innovation Center Site, With Plans For Affordable Housing

JPMorgan Relocating, Expanding Philly Office

JLL Nabs Brokerage Team With Over 75 Years Combined At Rival CBRE

From Precast To Conservation: Addressing Today's Stormwater Challenges

WeWork's UK and Ireland General Manager On How Hospitality Is Raising The Bar For The Modern Office