Grosvenor Purchases The Campus at Sunrise for $63M
- Oct 03, 2011
October 3, 2011
By Nicholas Ziegler, News Editor
The sun never seemed to set on the Washington, D.C., office market — and Grosvenor Americas keeps the trend going. The property group has just acquired The Campus at Sunrise in Reston, Va., for $63 million after purchasing it from BPG Properties Ltd.
The 11-acre office campus, located approximately 20 miles west of D.C., features three buildings that total 254,453 rentable square feet and boast a roster of tech, consulting and government-contracting firms. The campus is situated on the planned Metro Silver Line’s extension through Tysons Corner that would open in 2013.
Saying that he expects “strong rent growth over the next few years,” Scott Brody, vice president of investments at Grosvenor, looks to see a return on investment. “The Campus at Sunrise provides Grosvenor Americas with the opportunity to acquire a value-add property at a price that is below replacement cost in an improving office market cycle,” he said.
The purchase could prove valuable, as a recent report shows a recent slowing in demand. Cassidy Turley’s research in the Washington, D.C., office market saw slowed demand in the third quarter of 2011, due to a standstill in government leasing, noting that the region recorded net absorption of 55,400 square feet during the quarter. Many federal government agencies were in a “wait and see mode,” putting several prospectuses on hold.