Tysons Overlook Changes Hands for $92.5M
- Feb 15, 2016
Tysons, Va.—The Pentagon Federal Credit Union has acquired the condominium interest in Tysons Overlook, a 157,021-square-foot trophy office building in Tysons, Va., from Logistics Management Institute for $92.5 million. Cushman & Wakefield brokered the deal on behalf of the seller.
“LMI has been in the Tysons area for quite some time. We wanted to remain close to our original corporate home, find a location that insulated us from high-traffic areas, yet ensure that the area was more inviting than a typical corporate office park,” Manik Rath, LMI’s chief legal officer and lead negotiator for the deal, told Commercial Property Executive. “ Every aspect of the building, from the parking lot, to the light-filled grand entrances overlooking a pond, purposefully foments openness and balance.”
PenFed also acquired the remainder of the property from MRP Realty and plans to move its headquarters, currently in Alexandria, Va., to the upper floors. Building amenities include a state-of-the-art, 3,500-square-foot spa-quality fitness center, business lounge with full catering pantry, on-site café with outdoor seating and furnished event terrace, with a LEED Gold certification targeted in the coming year.
PenFed serves the banking needs of military and government employees, and for more than 50 years, LMI has served military and government employees. It was that symmetry that led to the sale.
“We always had the intent of selling our ownership interests, but we truly found a partner with PenFed. Because of the favorable market rates, our new lease still allows us to keep our occupancy costs lower than our previous building,” Rath said. “In the long term, federal consulting firms typically don’t own commercial real estate, and in this process wanted to engage with an entity that shard our values.”
Originally constructed in 2014 as the newest office building in Tysons Corner, Tysons Overlook is within one mile of the new Tysons Corner Metro Station with service to downtown Washington, D.C., and future service to Dulles International Airport by 2019 via the Silver Line Metrorail.
According to Rath, proceeds of the sale will pay off the current mortgage and the remainder will contribute to LMI’s strategic reserves.