TEGNA Sale Rocks McLean Office Market

The McLean office market has been rocked hard this month, with the announcement of two deals totaling almost $300 million.

The McLean office market has been tested this month, with the announcement of two deals totaling almost $300 million.

7950 Jones Branch Drive

7950 Jones Branch Drive

On July 21, TEGNA Inc., formerly Gannett Co., revealed that it has signed a contract to sell its massive corporate headquarters building at 7950 Jones Branch Drive for a price as large as the property itself, at $270 million. Tamares, a London-based private investment group, is the buyer. The deal was brokered by CBRE and is expected to close late in the third quarter or early in the fourth quarter of this year.

TEGNA is selling the property as part of its strategy to optimize its real estate portfolio. The 800,000-square-foot headquarters building opened in 2001. It was designed by Kohn Pedersen Fox Associates, one of the world’s preeminent architectural firms, and constructed by the Clark Construction Group. The facility consists of two glass-wrapped office towers, a plaza, landscaped terraces and a reflecting pool. Over the years, the property has won numerous awards for its design, architecture and craftsmanship.

As part of the deal, TEGNA will continue to occupy a portion of the complex for another 18 months.

Poju Zabludowicz, chairman of Tamares, described the TEGNA headquarters facility as “one of the keystone properties in Northern Virginia and greater Washington, D.C.” He also revealed that his company intends to turn the massive building into “some of the most sought-after first-class commercial office space in the area.” Tamares is no stranger to the U.S. market: Its portfolio includes properties in New York City, Las Vegas and the Greater Washington area.

A second, smaller transaction also took place this month in McLean. On July 27, Corporate Office Properties Trust announced the sale of the office building at 1550 Westbranch Drive. The 152,200-square-foot property is fully occupied by The MITRE Corp. until October 2016. It was sold for $27.8 million to an unnamed buyer.

Photo credit: www.7950jonesbranch.com