Premier location and strong property performance drive pricing beyond $400 psf
Washington, DC – Keith Lipton, Avison Young Principal and Managing Director of the company’s Washington, DC office, announced today the $28.5-million sale of Virginia Square Plaza, a 70,035-square-foot (sf) medical office portfolio located at 3801-3803 N. Fairfax Drive in Arlington, VA.
Avison Young Principals Jim Kornick and Chip Ryan, based in the firm’s Washington, DC office, were retained by ProMed Properties to market the portfolio. Avison Young positioned Virginia Square Plaza as a core medical office investment with redevelopment potential in Northern Virginia’s premier urban submarket, the Rosslyn-Ballston corridor of Arlington County – an area with many amenities and affluent demographics. The buildings were 92% leased at time of sale with a strong history of tenant renewal.
“The seller has done an exceptional job of maintaining occupancy while increasing rents in what is otherwise a soft office leasing market,” comments Kornick. “The property’s impressive performance justifies the $407 per square foot price and underscores this as a core medical office investment.”
Avison Young received interest ranging from REITs to private developers pursuing the potential for large-scale redevelopment. In the end, Harrison Street Real Estate Capital purchased the property as a long-term investment.
“The strong cash flow and low-risk investment profile made this acquisition a great fit for Harrison Street,” adds Ryan. “Proximity to Metrorail, abundant parking and limited competitive medical office space uniquely position Virginia Square Plaza to continue to perform exceptionally well.”
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