Finmarc Management has expanded its Northern Virginia office holdings with the $51 million acquisition of a four-building Class A office portfolio totaling 620,000 square feet within the Dulles Technology Corridor in Herndon, Va.
Known as the Dulles Corner portfolio, the assets were acquired for significantly less than replacement cost, according to Finmarc.
The buildings are located at 2411 Dulles Corner Park, 13880 Dulles Corner Lane, 2355 Dulles Corner Blvd. and 13825 Sunrise Valley Drive. Current tenants include Peraton, SAP National Security Services, DLT Solutions, Mission Essential, Valiant Integrated Services, Synopsys and BlackSky DC.
Bethesda, Md.-based Finmarc was represented in house while Eastdil Secured represented the undisclosed seller. Aaron Rosenfeld of Kelley Drye & Warren LLP provided legal services to Finmarc. Cliff Mendelson of Metropolis Capital Advisors assisted in the debt placement.
The firm has tapped a Cushman & Wakefield team led by Executive Director Joshua Masi to oversee leasing at the Dulles Corner portfolio. Tom Walsh, Will Thomas and Nate Marshall are also part of the leasing team.
Portfolio Details
Recent capital improvements made to the assets focused on modernizing building lobbies, amenities and common area spaces. Amenities include conference facilities, fitness center, on-site restaurant options, a daycare center and park with walking paths, water features, greenspaces and outdoor eating areas. The portfolio has more than 2,100 parking spaces.
Dulles Corner is situated at the intersection of Dulles Toll Road (Route 267) and Route 28, overlooking Dulles International Airport. It is served by the Innovation Center Metro Station on the Silver Line. The properties are also near Reston Town Center, a mixed-use development featuring apartments, stores and restaurants, and Village Center at Dulles, a shopping center with more than 300,000 square feet of retail and restaurants.
13380 Dulles Corner Lane, a four-story building with more than 150,000 square feet, is the newest of the four properties. It was completed in 1997 and underwent improvements in 2022.
The portfolio also includes:
- 2355 Dulles Corner Blvd., an eight-story building with more than 180,000 square feet, completed in 1988 and renovated in 2022.
- 2411 Dulles Corner Park, an eight-story nearly 180,000-square-foot building that was built in 1990 and renovated in 2022.
- 13824 Sunrise Valley Drive, a two-story building with nearly 105,000 square feet of space, completed in 1989 and renovated in 2005.
Investing in DC Region
The acquisition comes several months after Finmarc acquired Trinity Centre, a four-building portfolio comprising nearly 500,000 square feet in Centreville, Va., for $39.4 million. Located at 5860, 5870, 5875 and 5885 Trinity Parkway, the buildings are less than 13 miles from Dulles International Airport and about 26 miles from downtown Washington, D.C. That portfolio was 71 percent leased at the time of the sale.
Finmarc owns and manages a portfolio of commercial properties totaling nearly 8 million square feet in Washington, D.C., Maryland, Virginia, Delaware, Pennsylvania and North Carolina.
Finmarc Principal Neil Markus said in prepared remarks the firm’s acquisitions of the Dulles Corner and Trinity Centre portfolios along with its other holdings in the greater Washington, D.C., market validates its optimism about the market’s long-term prospects.
The company noted that CNBC ranked Virginia as the “top state for business” in 2024. In addition to growth by companies engaged in the aerospace, defense and high technology industries, Northern Virginia will see nearly 80 million square feet of new data center space delivered by 2030. According to Finmarc, that could lead to the creation of more than 40,000 new jobs in the region.