Finmarc Management Acquires Two-Building, 150,000-SF Office Portfolio in Alexandria for $31.5M
- Jul 08, 2014
Finmarc Management Inc. continues its expansion in Northern Virginia with the acquisition of a two-building office portfolio in Alexandria. The Bethesda-based commercial real estate company paid $31.5 million to buy Waterfront Center I and II from Gates Hudson.
The two waterfront properties offer more than 150,000 square feet of office space. Waterfront Center I was constructed in 1971 and was last renovated in 2010. The four-story property is located at 801 N. Fairfax St. and offers 60,000 square feet of space. According to Finmarc, Waterfront Center I is approximately 62 percent leased.
Waterfront Center II was constructed in 1987. It was last renovated in 2013, with improvements made to its lobby and elevator system. The five-story building is located at 209 Madison St. and offers 90,000 square feet of space. It was 74 percent leased at the time of the sale, with a three-level premier Sport and Health Club as its anchor tenant.
“Both assets satisfy our acquisition criteria and represent excellently maintained and strategically located buildings contained in extremely healthy office environments,” Marc Solomon, principal of Finmarc, said in a statement for the press. “Waterfront Center I and II will complement our existing office and retail portfolio, as we continue to increase our foothold in the Northern Virginia marketplace. We plan to stabilize the existing tenants and implement a strong marketing and leasing campaign to increase the occupancy of each building. Our research indicates there exists outstanding short-term and long-term leasing opportunities in the Old Town Alexandria submarket.”
Transwestern’s Institutional Commercial Group represented both the buyer and the seller in the transaction. The Transwestern team consisted of Gerry Trainor, Jim Cardellicchio, Wesley Machowsky and Clifton McCrory.
According to preliminary second-quarter research reports released by CBRE Group Inc., the Northern Virginia office market is expected to experience a significant uptick in sales this year, due to the increasing appetite of investors seeking a yield outside the urban core. CBRE also said that more than 15 properties are currently on the market, with a large business park soon to follow.
Photo credit: Transwestern