The Meridian Group Acquires SAIC Corporate Headquarters in Northern Virginia
- May 08, 2013
Bethesda, Md.—The Meridian Group, a real estate investment and development firm based in Bethesda, Md., has acquired Science Applications International Corp.’s landmark 18-acre corporate headquarters campus at Tysons Corner in Northern Virginia.
The purchase was made through Meridian’s $160-million discretionary real estate fund, Meridian Realty Partners I. Meridian’s purchase includes SAIC’s 600,000-square-foot three-building headquarters complex, and Meridian will lease back one of the buildings for seven years. The other two buildings will be vacated within a year. A fourth building with a surface parking lot is currently vacant and will be demolished for redevelopment.
“Tysons is the downtown of Northern Virginia, and is the 12th largest office market in the country. It has the largest concentration of retail space between DC and Miami, and will increase its attraction to employers due to its Beltway access, new HOT lanes and four new Metro stations,” Gary Block, The Meridian Group’s managing director, told Commercial Property Executive. “This transaction provides us with the ability to participate in the transformation of one of the largest office markets in the country into a dynamic live-work-play atmosphere.”
The property is located on Route 7 at the new Tysons Central 7/Greensboro Metro station, and it has the closest existing buildings to Metro anywhere in Tysons. Bounded by Westpark Drive and Greensboro Drive, the property sits in a major submarket of Tysons known as “The Hill” near Tysons Galleria Mall.
“The Greensboro area of Tysons, in particular, offers what we believe can be the true urban core of Tysons, and the property is right at the center of that,” Block said. “As tenants today are increasingly looking to relocate to newer, more efficient space, we believe the property is uniquely-situated to meet that demand at different price points, with new development competing at the upper end of the Tysons market and our existing, renovated buildings offering an extremely competitive product for more price sensitive tenants that are also seeking amenity rich, efficient space.”
According to Block, Meridian will start a $20-million renovation plan that includes repositioning and rebranding the three building complex, which will include an overhaul of the buildings’ mechanical system, renovation of all common areas including the main lobby, corridors, elevator cabs, ceilings (including lighting and sprinkler systems), fitness facilities, and restrooms, as well as creating exceptional outdoor work and social gathering spaces.
It will also create a new grand entrance to the complex immediately adjacent to the new Metro station, which should afford additional retail opportunities.
“Our investment philosophy is to acquire institutional quality assets in ‘path of growth’ locations near Metro rail stations, highway interchanges and retail or mixed-use projects; and, with value-creation potential,” Block said. “This transaction represents well the strategy that we have devised for our $160 million+ discretionary private equity fund.”