Federal Capital Partners Pays $61M for 184 KSF Office Property in DC Suburb

One Preserve Parkway, a seven-story, 183,667-square-foot trophy office tower in Rockville, Md., has been acquired for $61 million by Federal Capital Partners.

OFFICEOne Preserve Parkway, a seven-story, 183,667-square-foot trophy office tower in Rockville, Md., has been acquired for $61 million by Federal Capital Partners.

The seller was Boston Properties, represented by Bill Collins and James Cassidy of Cassidy Turley.

Developed in 2008 and designed by HOK, the building is 92 percent leased to eight tenants. Its majority tenant is Booz Allen Hamilton, which occupies 117,674 square feet through 2019. Other tenants include Lend Lease (US) Construction Inc., Highline Wealth Management and Wells Fargo Advisors, Collins told Commercial Property Executive.

“One Preserve Parkway is a very high-quality asset with credit-worthy tenants,” FCP senior associate Erik Weinberg said in a release. “We believe this is a market that is protected from over-development of competing product, and the building itself is very well-located to I-270 and major employers in Montgomery County.”

The building is part of the Preserve at Tower Oaks, an 84-acre master-planned, mixed-use development undertaken by a joint venture of Lerner Enterprises and The Tower Cos. Both companies, in fact, are headquartered in the development, at 2000 Tower Oaks Boulevard.

Federal Capital Partners manages $769 million of discretionary capital and is currently investing its second investment fund, a $529 million commingled, discretionary fund that closed in 2012.

Although fourth-quarter leasing in Rockville was light (only about 39,000 square feet, in a total inventory of nearly 8.4 million square feet), there are “limited large vacancies” projected for the coming quarters, according to a market report from Cassidy Turley. Overall office vacancy at year’s end was 14.9 percent.

Only one office project is currently under construction in this submarket, also according to Cassidy Turley: a 490,000-square-foot building being developed by JBG Cos. and fully preleased to the National Institute of Allergy and Infectious Diseases.