Scoop: Meridian Sells Tysons Technology Center For $96M
The developer sold Tysons Technology Center, a 280k SF office and data center complex, to a JV of NoVa-based Legacy Investing and data center operator Central Colo for $96M.
Meridian was represented by Cushman & Wakefield's Eric Berkman and Bill Collins and JM Zell's Jeff Zell, Jason Zell and Louis Kluger. Berkman tells Bisnow that the buyer made an offer in June before the property had officially hit the market.
"It just shows that demand for well-placed data centers in Northern Virginia remains incredibly strong and these guys took advantage of an opportunity to act before it hit the market," Berkman says.
Jason Zell says he has a personal relationship with Legacy Investors, which helped create a smooth transaction. He says the JV plans to invest in more data center infrastructure.
"They felt the building was in a great position to be utilized as a data center," he said. "They plan on increasing the capacity of the building to support more data center use in the building."
Meridian bought the property, at 7980 and 7990 Science Applications Court, in 2011 for $63M from SAIC. It then gave the property an $11M renovation and increased the occupancy from 63% to 91%. The two largest tenants are the GSA and Leidos.
"We had always planned on exiting the asset by end of year, so it's good to accomplish that," Meridian's Gary Block said. "Things always get extended or postponed so we were pleased to end on a good note."
Meridian also rezoned the property to include an athletic field, which will open in 2018 and be managed by the Fairfax County Park Authority.