JV Acquires Fair Oaks Plaza in Fairfax
- May 18, 2014
A Class A office building in Fairfax changed hands recently. Parkway Properties sold the Fair Oaks Plaza to a newly formed joint venture for an undisclosed price. The joint venture consists of Los Angeles-based Coretrust Capital Partners and Normandy Real Estate Partners of Morristown, N.J.
Fair Oaks Plaza is an eight-story office building located at 11350 Random Hills Road, approximately 20 miles west of Washington, D.C. The property offers 179,282 rentable square feet, and according to a press release, it was 86 percent leased at the time of the sale. Its tenant roster includes HQ Global, NY Life Insurance, Computer Sciences Corp., Syska Hennessy Group and local law firms McCandlish & Lillard and Harrity & Harrity.
Parkway Properties picked up the property last year, after it completed a $1.2 billion merger with Thomas Properties Group Inc. According to real estate website PropertyShark, Thomas Properties acquired the Fair Oaks Plaza in 2007 for $51 million. The same website lists the current market value of the property at $38.7 million.
This is the first acquisition of the Coretrust-Normandy joint venture, but, according to Normandy Partner Gavin Evans, it won’t be the last. “We anticipate a very successful outcome for our fund investors from our Fair Oaks Plaza venture. Moreover, we anticipate additional transactions in Northern Virginia with the Coretrust team, who share our approach to providing high-quality office environments in superior submarkets,” Evans said in a statement for the press.
Coretrust and Normandy will jointly manage the property. They have retained CBRE Group Inc.’s Jeff Roman, Mike Pepper and John DiCamillo to provide leasing services. Lease negotiations are already in progress with several tenants.
“We are very pleased to complete the first closing of our new company concurrent with the formation of the new partnership with Normandy. Fair Oaks is an outstanding asset, and we have no doubt that our joint venture management team will successfully execute our plan to improve the property, provide our signature customer service and increase occupancy,” Coretrust Managing Principal John Sischo said.
Photo credit: CBRE