By Bogdan Odagescu, Associate Editor
Rockville, Md.—International real estate powerhouse Hines recently announced the acquisition of North Bethesda Place I & II from JBG Cos. The amount was undisclosed but Bisnow reports the purchase price was $54.6 million. The two buildings total in excess of 345,000 square feet of rentable office space. During the acquisition process, JBG was represented by Cushman & Wakefield. The current combined occupancy of the properties is 49 percent, which Hines is looking to turn around with major improvements.
The two adjacent buildings, located just three blocks away from the White Flint Metro station on the Red Line, sit at 5515 Security Lane and 11400 Rockville Pike. Current tenants include JBS International, the National Cancer Institute and Whole Foods Market Group’s regional headquarters.
Immediate neighbors include the mixed-use North Bethesda Market development, which offers a Whole Foods Market, LA Fitness, Brio, Starbucks, and more retail and dining options. The site is also close to the White Flint Plaza strip mall. According to Cushman & Wakefield, the area is rapidly growing, with 9,800 new apartments and 2.5 million square feet of retail in the pipeline.
The 11-story North Bethesda Place I totals 160,846 square feet and was built in 1972. Bethesda Place II, completed in 1980, is an 11-story, 184,721-square-foot building with three of its floors allocated for a parking garage. Both properties saw upgrades and renovations in 2009 and 2003, respectively, and were renovated once more in 2015. Hines is planning capital improvements, including the completion of already running refurbishments and the addition of a conference center and a fitness facility.
“We are in the process of developing architectural plans for the comprehensive repositioning of the campus and taking it to a new standard of excellence…With new tenants already showing interest, we look forward to adding value by returning the buildings to stabilization,” said Scott Martinson, Hines managing director, in a prepared statement.
Image courtesy of JBG