KBS REIT III Snaps Up Second Northern Virginia Property in a Month
- Jan 08, 2015
By Adrian Maties, Associate Editor
KBS Real Estate Investment Trust III has acquired another property in Northern Virginia. The Newport Beach, Calif.-based real estate investment trust purchased 100 percent of the Class A voting units of Clarendon Owners LLC, the owner and ground lessee of Arlington’s 3003 Washington Blvd., for $149.1 million plus closing costs. KBS also plans to redeem the 125 outstanding Class B units this month.
3003 Washington Blvd. was constructed by the Penzace Cos. The 211,170-square-foot office building opened last year. It consists of 10 stories and a penthouse and includes a a rooftop terrace, fitness center and 12,000 square feet of fully leased retail space. Last November, the Northern Virginia chapter of NAIOP awarded the property with “Best Building” in the “Speculative Office 7 to 14 Stories” category.
The property includes windowed glass on three sides, nine-foot ceilings and a lobby featuring marble, black-painted glass and metal accents. Its location makes it accessible to the District of Columbia and historically desirable Clarendon submarket. “We believe that the property’s location and amenities will help our tenants attract top talent from the RCB Corridor for their employee base,” observed Stephen Close, senior vice president of KBS, in a statement.
3003 Washington Blvd. is 95 percent leased to eight tenants, including The Common Application and The CNA Corp.
The property is KBS’s second office acquisition in Northern Virginia in less than a month. In December, the REIT purchased Reston Square for $48 million. The 139,071-square-foot office building is located in the Reston-Herndon submarket.
Photo credit: Penzace Cos.