Brandywine Realty Sells DC-Area Office Building
- Sep 19, 2019
NYSE-listed Brandywine Realty Trust has sold Plaza 1900, a 210,000-square-foot office building in Tysons, Va., to Foulger-Pratt. Jud Ryan and James Cassidy, executive managing directors at Newmark Knight Frank, handled the sale of the property at 1900 Gallows Road on behalf of Brandywine.
Ryan commented that the asset enjoyed strong interest from institutional and private investors, driven by the possibility of raising rents up to 40 percent through a strategic capital investment in the building, according to a statement. Completed in 1989, the Class A building west of Washington, D.C., features a conference room, parking garage and two-story lobby.
Financial terms of the recent sale were not disclosed. Brandywine acquired the property from Lazard—formerly Lazard Frères & Co.—as part of a 67-asset portfolio deal in 1998 and subsequently renovated an entire floor of the building, creating ready-to-occupy “spec suites” ranging in size from 2,500 to 3,500 square feet.
Buying into bustling Tysons
The property sits on a 4.1-acre site within half a mile of the Greensboro and Tysons Corner Metrorail stations, and is accessible via routes 7 and 123. Tysons, or Tysons Corner as the unincorporated community is often called, is home to one of the most robust markets in the country, with 5.1 million square feet of mixed-use development recently delivered and another 3.3 million square feet underway, according to NKF.
Software firm Appian last year signed a 200,000-square-foot lease at Valo Park, an office campus at 7950 Jones Branch Drive in Tysons, to relocate its headquarters from Reston, Va. The move will bring 600 jobs to the nearby community.
Brandywine, which owns, develops and manages a 24.9 million-square-foot real estate portfolio as of June, is working on the first phase of the Schuylkill Yards development with Drexel University. The $3.5 billion mixed-use, master-planned project aims to create a hub for technology and life sciences firms in West Philadelphia.