Vornado to Sell Three Reston Office Buildings for $126 Million
- Nov 02, 2012
Vornado Realty Trust (VNO) continues to trim its portfolio. The New York-based real estate investment trust announced on October 29 that it has entered into an agreement to sell three office buildings located in suburban Fairfax County, VA, for approximately $126 million or roughly $255 per square foot. Vornado has also reached a deal to sell another office building in downtown Philadelphia for $60 million.
The three Fairfax County properties are the Reston Executive Center buildings located at 12100, 12110 and 12120 Sunset Hills Road, in Reston, right in the heart of Virginia’s technology center. This 494,000-square-foot class A office park is within easy walking distance of the Reston Town Center and just minutes away from restaurants, shops and banking, as well as Tysons Corner. It offers easy access to the Dulles Toll Road, the Capital Beltway, Fairfax County Parkway, Route 28 and Dulles International Airport.
Vornado sold the complex to an undisclosed buyer. The company expects to complete the sales of the Fairfax and Philadelphia properties in the fourth quarter of 2012. It also expects these two transactions to result in total net proceeds of approximately $89 million after repaying an existing loan and closing costs. The gain will be about $70 million.
Marcus & Millichap reports that properties sold in the Washington, DC Metro Area over the past year carried a median price of $253 per square foot, marking a seven percent increase over the prior year. In 2008, at the peak of the market, the median price reached $290 per square foot. Over the past 12 months, transaction velocity surged 20 percent. It’s been a busy past week for the Washington, DC office market. Commercial Property Executive reports that CNN’s 11-story Washington, DC headquarters building was recently sold for $107 million. Click here to read the full story.
Charts courtesy of Marcus&Millichap.
Photo credits: Vornado