Meridian Group Acquires 2 Tysons Office Buildings For $58M
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."