Rubenstein Partners JV Sells Northern Virginia Office Asset

Together with Griffith Properties, the company completed a capital improvement and repositioning program at Centerstone at Tysons in McLean that resulted in a full-building lease with Freddie Mac.

Centerstone at Tysons. Image via Google Street View
Centerstone at Tysons. Image via Google Street View

Six months after Freddie Mac leased the entire 150,000-square-foot Centerstone at Tysons office building in the Tysons Corner submarket of McLean, Va., owners Rubenstein Partners and Griffith Properties have sold the Class A property. The buyer and sale price were not disclosed, but the joint venture partners acquired the building in 2015 for approximately $28 million.

The sale of the six-story building comes after the two partners finalized a comprehensive capital improvement program that transformed the property, built in 2001, into an amenitized facility. Upgrades included a full lobby renovation and the addition of an on-site conference center, a fitness center with lockers and showers, Smart Café with Wi-Fi and a self-service micro market. Additionally, Centerstone at Tysons also has ample, structured parking, car charging stations and a bike storage facility.

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The property is located near two metro stations, Dulles Toll Road and the new Jones Branch Drive interchange with the Interstate 495 express lanes. The asset is also near popular retail, dining and hotel offerings including Tysons Corner Center, Tysons Galleria, McLean Hilton, Ritz-Carlton Tysons, Whole Foods, Harris Tweeter and a new Wegmans grocery store.

Read Mortimer, senior vice president with Rubenstein Partners, and Marci Loeber, managing principal with Griffith Properties, noted in a prepared statement that the repositioning strategy helped the joint venture take advantage of a lack of available large blocks of office space in the submarket to secure a single prominent credit tenant.

Rubenstein activity

Centerstone at Tysons. Image courtesy of Rubenstein Properties
Centerstone at Tysons. Image courtesy of Rubenstein Properties

The Northern Virginia sale isn’t the only office property disposed of in recent months by Rubenstein. In July, the private real estate management and advisory firm sold 181 Harbor Drive, a 91,040-square-foot Class A office building in Stamford, Conn., to a joint venture between The Melohn Group and Drake Street Partners for $33.5 million. The building, completed in 1982, is the headquarters of Vineyard Vines. Freedom Boat Club is also a tenant at the property. Rubenstein continues to own the other five buildings within the 17-acre, six-building, 780,445-square-foot Shippan Landing waterfront office campus. The firm planned to invest $40 million in capital improvements for the remaining assets. Rubenstein has other Stamford assets including 600 Washington Blvd., a 12-story, 540,000-square-foot office building it acquired in June from the Royal Bank of Scotland in a deal valued at $163 million.

In September, Rubenstein teamed up with Monarch Alternative Capital to buy Lindbergh Center, a 1.1 million-square-foot office property in Atlanta’s Buckhead submarket, for $187 million from Columbia Property Trust. Built in 2002, the asset is part of the 47-acre Lindbergh City Center development situated alongside the Lindbergh Center Transit Center on the MARTA line.

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