KBS REIT Buys Northern Virginia Office Building

KBS REIT III paid $52 million for the acquisition of an approximately 95,000-square-foot office property located in Arlington, Va.

By Adriana Pop, Associate Editor

In a $52 million deal, or about $548 per square foot, California-based KBS Real Estate Investment Trust III has acquired the 3001 Washington Blvd. office building located in the Clarendon neighborhood of Arlington.

3001 Washington Boulevard
KBS now owns both 3003 and 3001 Washington Boulevard in Arlington.

The seller of the eight-story, 94,837-square-foot property is Penzance, a privately held real estate investment firm based in Washington, D.C. Collins Ege of Eastdil Secured brokered the off-market transaction.

The building, which is LEED Gold Certified, is located two blocks away from The Market Common at Clarendon, an outdoor, mixed-use development with restaurants, residential buildings and 30 retailers, and one block away from the Clarendon Metrorail Station, which is three stops from downtown Washington, D.C., and four stops from the Pentagon. By car, the property is only 10 minutes away from downtown Washington, D.C. The Clarendon neighborhood has become known for its unique mix of shops, bars and small restaurants and is considered the downtown of Arlington.

KBS REIT III also owns the neighboring 3003 Washington Blvd. building, which it acquired from Penzance less than a year ago for $146.8 million. Together, the properties offer a total of 311,120 square feet.

Amenities at 3001 Washington Blvd. include a pending full service restaurant (for which the lease has been executed) and private office terraces on two floors. The building also shares amenities with its 3003 neighbor, including a fitness center, rooftop terrace and underground parking garage.

“We believe northern Virginia has become a popular place for businesses, and tenants will enjoy Clarendon’s urban feel, mass-transit options and accessibility to Washington, D.C.,” Stephen Close, KBS senior vice president, said in prepared remarks. “We are pleased to add this asset to the KBS portfolio and combine it with 3003 Washington Boulevard, as it was originally intended.”

Image courtesy of KBS