Northern Virginia Office Campus Trades for $47M
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Acting on behalf of MRP Realty, Newmark Knight Frank orchestrated the sale of two office buildings in a Washington, D.C., suburb.
Newmark Knight Frank has arranged the $46.5 million sale of 20130 and 20135 Lakeview Center Plaza, two office structures encompassing a total of approximately 204,100 square feet in Ashburn, Va. Acting on behalf of MRP Realty, which had owned the assets in a joint venture with The Brookdale Group, NKF secured Innovatus Capital Partners LLC as a buyer for the suburban Washington, D.C., buildings also known as Lakeview East and West.
Located within the 60-acre Lakeview at University Center mixed-use development, Lakeview East and West first opened their doors in 2009, each featuring just over 102,000 square feet. The twin, four-story structures are located near the Dulles Toll Road and Dulles International Airport and hold the distinction of being among Ashburn’s highest-quality office offerings.
Together, the buildings are 96 percent leased, with a tenant roster that includes the likes of coworking space provider Regus and IT staffing company Mindseeker. Lincoln Property Co., which handled leasing of the properties for MRP, will continue to oversee leasing and will also take on property management responsibilities under the new ownership.
Northern Virginia on the Radar
Jud Ryan and James Cassidy, executive managing directors with NKF, spearheaded the sale of Lakeview East and West. In a prepared statement, Ryan noted that the Northern Virginia suburbs continue to attract institutional capital eager to take advantage of increasing office tenant demand in the area spurred by the growing technology and defense sectors. As noted in a fourth quarter 2019 report by NKF, Northern Virginia recorded 1.6 million square feet of net absorption in 2019, marking the third consecutive year of positive absorption.
And then there’s the Amazon effect. Amazon’s $3.5 billion HQ2 campus at National Landing has already stirred up a great deal of activity in the office sector across Northern Virginia. Investment sales in the area totaled nearly $2.2 billion in 2019. “The year saw an uptick in sales transactions for most property types, a possible reflection of the Amazon effect even in areas that are not geographically close to Amazon’s headquarters, such as the Toll Road,” according to the NKF report. “The momentum seen in 2018 and 2019 is likely to continue in 2020 as the Amazon effect persists, with investors drawn to the area by the growing tech economy.”