Guardian Nabs 111,000SF Suburban D.C. Office for $55M
- Oct 30, 2008
Ownership of Quincy Crossing, a fully-leased 110,900-square-foot office building in Arlington, Va., less than five miles across the Potomac River from the White House in Washington, D.C., has changed hands. Normandy Real Estate Partners sold the Class A property to Guardian Life Insurance Co. in a transaction valued at $55.5 million. The deal marks a short-term hold for Normandy. The company came into possession of Quincy Crossing with the $538 million acquisition of a group of 13 office properties from Morgan Stanley Real Estate in late 2006. Morgan Stanley sold the 2.4 million-square-foot East Coast portfolio to Normandy immediately after the closing of its $1.9 billion purchase of Glenborough Realty Trust. Carrying the address of 801 N. Quincy St., Quincy Crossing sits two blocks from a metro station and just across from the proposed future headquarters of the Defense Advance Research Projects Agency (DARPA) in Arlington’s Rosslyn-Ballston Corridor. The building was developed in 2002 and, in addition to parking, includes a parking facility, as well as ground-level retail space presently accommodating to restaurants. The U.S. Department of the Interior serves as the property’s anchor tenant, occupying approximately 39,100 square feet under a lease that is scheduled to expire at the end of January 2012. Other names on the 12-tenant roster include Everest College, the American Association of School Administrators Inc., American Waterways Operators and Applied Research Associates Inc. According to Cassidy & Pinkard Colliers, which marketed the property on behalf of the seller, in-place rents are between 5 and 12 percent below market rents, and all leases are scheduled to expire by 2014. The average asking rate for Class A office space in the Rosslyn-Ballston Corridor is $40.28 per square-foot, as per a third quarter, report by real estate services firm Grubb & Ellis Co. Despite the challenging lending market, Quincy Crossing attracted a great deal of attention among hopeful investors. “At the end of the day, there were multiple groups at similar pricing,” Jud Ryan, vice president with Cassidy & Pinkard, told CPN. Ryan, along with colleagues James Cassidy, Bill Collins, Paul Collins and Drew Flood, worked on the transaction. “The fundamentals remain strong in the Rosslyn-Ballston Corridor; most people view it as an extension of Downtown Washington, D.C. As for the building, there is a lot of future upside because DARPA is likely to move its headquarters across the street, and that will probably generate even more demand.”While Normandy is no longer the owner of Quincy Crossing, it will maintain an association with the building as property manager. Headquartered in Morristown, N.J., Normandy is a privately owned, fully integrated real estate and investment management concern. The company owns a portfolio of commercial, residential and hotel properties across the Boston-Washington, D.C. corridor.