Transwestern Represents Seller
Transwestern today announces its Mid-Atlantic Capital Markets Group has been retained by a joint venture between Penzance and a global real estate investment manager to sell a three-building, 266,000-square-foot office portfolio comprising 10700 Parkridge Blvd. and 11107 – 11109 Sunset Hills Road in Reston, Virginia.
This core-plus, multitenant portfolio provides investors stability with upside potential through the addition of amenities to the properties, the opportunity to roll expiring below-market-rate leases to market rates, the lease-up of vacant space, and the utilization of additional density. The portfolio is 90 percent leased with secure in-place cash flow from a diverse mix of tenants with an average remaining lease term of more than four years. Investment-grade tenants IBM and RSA Security, a Dell Technologies company, account for 26 percent of the portfolio’s occupancy.
“This portfolio provides investors the rare opportunity to acquire high-quality office product in Reston, one of the Mid-Atlantic’s strongest submarkets with 15 percent rent growth during the past two years,” said Gerry Trainor, Executive Managing Director of Transwestern’s Mid-Atlantic Capital Markets Group. “Rents in the Reston submarket are poised to rise as vacancy rates have continued to fall since 2012 and are now below the 20-year average for the first time since 2004, when rents rose 32 percent during the next three years. With rents that are 7 percent below the market rate, this portfolio is well-positioned to capitalize on current market conditions.”
Located along the Dulles Toll Road, the properties are highly visible with good signage opportunities, as well as easy access to Dulles International Airport. The portfolio is less than 1 mile from the Wiehle-Reston East Metro Station on the Silver Line and 2 miles from Reston Town Center, a mixed-use development offering access to a rich amenity base of more than 50 retailers, 35 restaurants and a multiscreen movie theater. Other nearby retail destinations include the Plaza America Shopping Center and South Lakes Village Shopping Center.
The properties feature efficient floor plates ideal for either single or multitenant layouts, park settings with collaborative outdoor work spaces, private balconies, Wi-Fi-enabled patios, access to bike and walking paths, electric car charging stations and solar power roof panels. Click here to watch a video tour of the portfolio.
With nearby major employers General Dynamics and Fannie Mae, as well as redevelopment of older office product to multifamily and mixed-use product, demand for office space in the area will remain strong. Since the arrival of the Metrorail line to Reston in 2014, more than 15 new mixed-use projects have been constructed or are under construction within 1.5 miles of the Wiehle-Reston East Metro Station. However, few of these projects include office components, and most required the demolition of Class B and C office product, leading to a shortage of modestly priced office space.
Transwestern’s Mid-Atlantic Capital Markets Group focuses on investment services throughout the Washington, D.C., region, providing clients with exceptional service and market knowledge. During the past 24 months, the group’s transactions have exceeded $1.8 billion in aggregate value. The team’s success is a direct result of detailed underwriting and keen understanding of the local, national and international investment communities. For more information, visit the Mid-Atlantic Capital Markets Group website.
ABOUT TRANSWESTERN
Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Tenant Advisory, Capital Markets, Asset Services and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 35 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern. For updates from the Mid-Atlantic region, follow @TranswesternDC.
