By Adriana Pop, Associate Editor
Dallas-based Velocis, a private equity real estate manager, and its joint venture partner Moore & Associates, a Bethesda, Md.-based local sponsor, have announced the purchase of Shirlington Tower, a Class A, 233,446-square-foot office building in Arlington, Va. Terms of the transaction were not disclosed.
In addition to the nearly half-occupied LEED Gold office building, the property comprises an attached six-story, 827-space parking garage that provides tenants with an above-average parking ratio. On-site amenities include a fitness club, restaurant and salon.
Shirlington Tower is situated adjacent to Interstate 395 and just one exit from the Pentagon. The property is also within walking distance to the amenity-rich Village at Shirlington shopping center, an outdoor mall featuring shopping and dining options, as well as a spa, cinema, hotel and Metro bus station.
The transaction marks the fund’s second acquisition in Northern Virginia this year. Earlier in August, the fund also purchased Loudon Gateway II and III, two Class A suburban office buildings located in the upscale Washington, D.C. suburb of Sterling, Va., in Loudoun Gateway Business Park.
“At just 48 percent leased, Shirlington Tower offers Velocis the opportunity to acquire a Class A, well-located asset in the recovering Northern Virginia market at a significant discount to replacement cost,” said Velocis Principal Mike Lewis. “This is a true value-add opportunity, which is exactly in line with our asset acquisition strategy to identify and purchase properties that offer opportunity to unlock hidden value. Having a local, joint venture partner in Moore & Associates with whom we have had prior experience further reinforces our confidence in the overall business plan.”
The Washington, D.C. office of Eastdil Secured represented the seller in the transaction. The property’s management and leasing activities will be handled by Moore & Associates.
Velocis has been active in real estate investment since 2011, purchasing 18 assets located in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. Joining Lewis as principals in Fund II are Fred Hamm, Paul Smith, Jim Yoder and David Seifert.
Moore & Associates manages over 1.5 million square feet of commercial real estate in both Washington, D.C. and Austin, Texas valued in excess of $325 million.
Image courtesy of Velocis