FINMARC MANAGEMENT, INC. ACQUIRES 26 BUILDINGS COMPRISING 950,000 SQUARE FEET IN NORTHERN VIRGINIA FROM FIRST POTOMAC REALTY TRUST FOR $96 MILLION
Posted on: 25/03/2016

Finmarc Management, Inc., a Bethesda, Maryland-based commercial real estate firm, has announced the acquisition of a 26-building portfolio, comprised of approximately 950,000 square feet of commercial office, flex/office and warehouse space in the Northern Virginia marketplace from First Potomac Realty Trust for $96 million. The portfolio is situated throughout Reston, Herndon, Manassas, Merrifield and Chantilly and is cumulatively 76% leased with more than 70 tenants.

Finmarc currently owns and manages seventy-two office, flex, industrial and retail properties as well as several residential projects in the Mid-Atlantic area. Finmarc’s entire portfolio now exceeds 5.7 million square feet of space.

“We recognized the institutional quality of this portfolio, coupled with the opportunity to immediately establish a significant foothold in the Northern Virginia market with a diverse product base,” explained Neil Markus, a Principal of Finmarc. “This acquisition was completed significantly below replacement cost, while also offering a value-add investment opportunity with the successful leasing of the available 250,000 square feet of space. Every fundamental exists in these sub-markets for immediate and long-term growth including continued job and population expansion, the improvement of transportation systems and the proximity of the high-tech corridor and the Federal Government.”

Portfolio descriptions

• Reston Business Campus – Reston, VA:   85,000 square feet consisting of four single-story office buildings.  The project is located minutes off the Fairfax County Parkway and the Dulles Toll Road in Reston.

• Van Buren Office Park – Herndon, VA:  110,000 square feet consisting of five single-story office buildings.  The project is located just off the Dulles Toll Road near the Fairfax County Parkway and Reston Town Center.

• Herndon Corporate Center – Herndon, VA:  130,000 square feet consisting of four single-story office buildings.  The project is located off Herndon Parkway and is within close proximity to Interstate 66, Route 28, the Dulles Toll Road and Washington Dulles International Airport.

• Enterprise Center – Chantilly, VA:  190,000 square feet consisting of three single-story industrial/office buildings and one three-story office building.  The project is located off US Route 50 and is adjacent to Washington Dulles International Airport.

• Gateway Centre Manassas – Manassas, VA:  102,000 square feet consisting of three flex buildings.  The project is positioned near Innovation Park, a public-private collaborative research, data center, government and bio-manufacturing campus.

• Linden Business Center – Manassas, VA – 110,000 square feet consisting of three flex buildings.  The project is positioned less than one mile from Gateway Centre Manassas and is within close proximity to Interstate 66 and VA Route 234.

• Windsor @ Battlefield – Manassas, VA:  155,000 consisting of two flex/office buildings.  The project is positioned just off Interstate 66 and near Northern Community College.

• Prosperity Business Center – Merrifield, VA:  72,000 square feet consisting of a single-story warehouse building.  The project is located near the Dunn Loring Metro Station in Fairfax County.

Representative tenants contained within the nearly one-million square foot portfolio trade area include the General Services Administration, Fairfax County, McLean Bible Church, American Public University System, Lennox Industries and U.S. Home Corporation.

“Because the entire portfolio has been maintained in excellent physical condition, we can immediately begin focusing on the marketing of the available spaces to build occupancy levels,” Markus added. “Our research shows extremely strong and sustainable demand for each product type and we plan to re-introduce this portfolio and aggressively lease these buildings to the Northern Virginia marketplace.”

With this acquisition, Finmarc Management, along with its partners has acquired or disposed of more than $600 million worth of properties over the past three years.

Joseph Hoffman and Aaron Rosenfeld of the law firm Kelley Drye & Warren, LLP represented Finmarc Management in this transaction.

James Meisel and Bruce Strasburg of Holliday Fenoglio Fowler represented First Potomac Realty Trust in the disposition of this portfolio.

Finmarc Management, Inc. is a fully-integrated commercial real estate company that focuses on real estate investment, management, leasing and development of retail, industrial/flex projects, and office buildings throughout the Mid-Atlantic region. The firm presently owns and/or manages a diverse portfolio encompassing more than 5.7 million square feet of properties located in Maryland, Washington, D.C., Virginia, Delaware, New Jersey and Pennsylvania. For additional information, visit www.Finmarc.com