Suburban D.C. Office Building Brings in $63M
- Mar 28, 2008
Shirlington Gateway, a premier office property in the Arlington, Va., has just come under new ownership, courtesy of a transaction valued at $62.5 million. Choi Cos. L.L.C. took the 207,000 square-foot building off the hands of Federal Capital Partners, which had acquired the property just under two years ago for $55 million.Developed in Shirlington Gateway sits within the Arlington blossoming submarket of Shirlington, an area located in the I-395 corridor only minutes from Washington, D.C., and a stone’s throw from the Pentagon. The 12-story structure is presently 95 percent leased to a roster of leading businesses. Among the occupants are EDO Corporation, which is the lead tenant with over 71,100 square feet, MTS Technologies and Advanced Systems Development. Shirlington Gateway’s appeal has been steady over the last few years; the building was also 95 percent leased when Federal Capital purchased it in July 2006. In addition to the steady income from the long list of tenants, the building presents an upside potential for the future; in place rents are, according to real estate services firm Cassidy & Pinkard Colliers, which marketed the property on behalf of Federal Capital, approximately $3 below current market rates.While property’s desirability among businesses been consistent over the years, its value in the eyes of investors has been on a steady and significant incline. MGP Real Estate sold the property to Federal Capital for an approximately $15 million profit in 2004, two years after having purchased it $40.5 million.