Exclusive: Former Saks 5th Ave. Sells in Suburban DC

EPR Properties has purchased a 116,828-square-foot retail property in McLean, Va., according to Yardi Matrix information. Exemplar Luxury Group sold the asset that is part of the 740,847-square-foot super regional mall Tysons Galleria for $39 million, or $333 per square foot.

EPR Properties’ retail portfolio across metro Washington, D.C., includes two other properties, namely a 90,000-square-foot building part of Fairfax Corner, in Fairfax, Va., and the 60,000-square-foot Pinstack at Kincora in Sterling, Va.

Retail investment sales across metro Washington, D.C. have increased by 30 percent year-over-year through June, according to a Marcus & Millichap report, while the average price per square foot rose by roughly 1 percent annually since 2023. The metro’s Virginia suburbs recorded the strongest activity, especially in the Dulles Corridor, the Southeast Fairfax Count and the Alexandria/Interstate 395 area. This surge in activity targeted both multi-tenant and single-tenant retail centers.

McLean’s retail hub draws new investment

Completed in 1987 and formerly known as the Saks Fifth Ave. building, the property rises up to three stories. Tysons Galleria’s overall tenant roster includes several luxury brands, such as Balenciaga, Boss, Burberry, Bottega Veneta, Cartier, Chanel, Dior, Max Mara and Ralpha Lauren. Moreover, at the start of this month, OneLife Fitness announced the company’s plans to build a 110,000-square-foot fitness center at the super regional mall, slated to become one of the largest fitness and wellness destinations in the area, Globe and Mail wrote.

In January of this year, Tysons Galleria became the subject of a $435 million fixed-rate commercial mortgage loan issued by Morgan Stanley Mortgage Capital Holdings, Bank of America and Goldman Sachs Mortgage Co. The refinancing note bears a maturity date in 2031.

The former Saks building is at 2051 International Drive, just off the interchange between Interstate 495 and Virginia State routes 123 and 267, which connect the area to downtown Arlington, Va., 14 miles southeast. The former Saks Fifth Ave. is also across the road from several other retail centers, including Tysons Square, Tysons Corner Center and Tysons Plaza.