St. John Properties Pays $11.7M for Three OfficeFlex Buildings in Sterling
- Nov 24, 2014
St. John Properties Inc. recently acquired a three-building office/flex portfolio in Sterling. The company paid $11.7 million to buy the properties from an affiliate of Lone Star Funds. With this acquisition, St. John’s Northern Virginia portfolio now includes more than 570,000 square feet of office and flex space and about 83 acres of land for future developments.
The three properties are located at 21660, 21670 and 21680 Ridgetop Circle, in Loudoun Tech Center. Constructed between 2000 and 2001, together they offer 125,000 square feet of space. According to St. John, the larger of the three has 57,000 square feet and is currently 78 percent occupied. Its tenant roster includes Textron Systems and Sonus Networks. The remaining two buildings, with 36,000 and 32,000 square feet of space, are both vacant, bringing the portfolio’s total occupancy to 36 percent.
St. John plans to improve the three properties. It will also start construction on 282,000 square feet of speculative R&D/flex/office space at its nearby Ashburn Crossing business community. In Ashburn, the company recently opened Ashburn Technology Park, a 43-acre business community with eight buildings offering a total of 445,000 square feet of R&D/office/flex space. They are home to such companies as Carrier Corp., Comcast, Dulles Area Association of Realtors, Volkswagen/Audi, Lost Rhino Brewery and VeriSign.
“We remain extremely bullish on Northern Virginia. The fundamentals remain strong, in spite of market challenges over the past several years,” Matt Holbrook, regional partner for St. John Properties, said in a statement. “The absorption rate of our current portfolio has been robust, thanks in part to the local workforce, technology infrastructure and the excellent quality of life that exists in the region. The high-technology workforce has amazing depth, and companies gravitate to this area to access this specialized labor force.” Holbrook added that the newly acquired buildings will help meet the expansion needs of the existing St. John tenants in the area.
Photo credit: St. John Properties