FINMARC MANAGEMENT ACQUIRES DULLES CORNER, FOUR-BUILDING OFFICE PORTFOLIO COMPRISING 620,000 SQUARE FEET IN N. VIRGINIA, FOR $51 MM
Posted on: 02/01/2025

Finmarc Management, Inc., a diversified commercial real estate investment and management firm headquartered in Bethesda, Maryland, completed the $51 million acquisition of Dulles Corner, a four-building portfolio composed of nearly 620,000 square feet of Class “A” commercial office space. 2411 Dulles Corner Park, 13880 Dulles Corner Lane, 2355 Dulles Corner Boulevard, and 13825 Sunrise Valley Drive are positioned within Northern Virginia’s Dulles Technology Corridor in Herndon, VA.  Eastdil Secured represented the seller. Aaron Rosenfeld of Kelley Drye & Warren LLP provided legal services to Finmarc. Cliff Mendelson of Metropolis Capital Advisors assisted in the debt placement.

This acquisition follows Finmarc Management’s recent acquisition of Trinity Centre, a four-building portfolio composed of nearly 500,000 square feet of Class “A” office space in Northern Virginia. The activity brings Finmarc’s 2024 transactional volume to approximately $210 million, totaling almost 1.7 million square feet of commercial office, industrial, data center land and retail space.

              “Few real estate investment companies, locally or nationally, can match the level of acquisition and disposition activity that our team successfully executed in the past year,” stated Finmarc Principal Neil Markus. “We intend to remain aggressive in our pursuit of emerging institutional-quality, under-performing, and value-add assets in the coming year, backed by ready capital and a strong track record of certainty to close, which positions us a preferred and proven counterparty to sellers of real estate assets. Our primary investment focus is the Mid-Atlantic, Northeast, and Southeast portions of the United States, but we will consider additional areas supported by a healthy economy and a growing population and labor market.”

Dulles Corner acquired for significant upside potential

Dulles Corner, positioned at the intersection of Dulles Toll Road (VA Route 267) and VA Route 28 and overlooking Dulles International Airport, is anchored by a mix of companies engaged in the aerospace, defense, and high technology industries. The portfolio is benefitted by a best-in-class amenity package and recent capital investments which focused on modernization of the building lobbies, common area spaces and amenities. Dulles Corner is served by the Innovation Center Metro Station on the Silver Line; Reston Town Center, a mixed-use development featuring apartments, retail stores and restaurants; and Village Center at Dulles, with more than 300,000 square feet of retail and restaurants.

The Dulles Corner portfolio consists of:

• 2411 Dulles Corner Park, an eight-story, nearly 180,000 square foot commercial office built in 1990 and renovated in 2022
• 13880 Dulles Corner Lane, a four-story commercial office building with more than 150,000 square feet, delivered in 1997 and improved in 2022
• 2355 Dulles Corner Boulevard, an eight-story commercial office building with more than 180,000 square feet, constructed in 1988 and renovated in 2022
• 13825 Sunrise Valley Drive, a two-story office building with nearly 105,000 square feet, delivered in 1989 and improved in 2005

The four-building portfolio has more than 2,100 parking spaces and is equipped with state-of-the-art conference facilities, a private fitness center, on-site restaurant options, a daycare center, and a Central Park feature with walking paths, water features, greenspaces, and outdoor eating areas. Representative tenants include Peraton, SAP National Security Services, DLT Solutions, Mission Essential, Valiant Integrated Services, Synopsys, and BlackSky DC.

Capitalizing on Northern Virginia and DC market dynamics

“The former owners of Dulles Corner were reluctant to invest additional capital into leasing, which translated to the limited leasing achieved over the past several years and a distressed buying opportunity, which produced a sale significantly below replacement cost,” Markus added. “We believe market fundamentals remain extremely positive, led by the portfolio’s position, the diverse range of industries in the DC-Northern Virginia market, and the presence of a highly skilled labor force. Our team sees many paths to achieve substantial upside, and we intend to pursue every opportunity.

“Our recent acquisition of Trinity Centre, together with significant commercial real estate holdings in the Northern Virginia and greater Washington, D.C. market, validates our optimism about the long-term prospects of the region,” he said.

In conjunction with the acquisition, Finmarc has ready equity available for new lease transactions and tapped Cushman & Wakefield’s team led by Executive Director Joshua Masi, supported by Tom Walsh, Will Thomas and Nate Marshall overseeing the assignment.

“We intend to reinvigorate the marketing and leasing strategy by capitalizing on the market dynamics that favor best-in-class and extremely well-positioned assets such as Dulles Corner,” Markus added.

CNBC ranked Virginia as the “top state for business” in 2024, and at 2.7 percent, the state has the second lowest unemployment rate of major metropolitan areas in the United States. Northern Virginia was the beneficiary of nearly $850 billion in contracts awarded by the U.S. government in fiscal 2024, and Fairfax County has achieved a 63 percent growth in contracts over the past 10-years, including 38.3 million in 2023.

In addition, nearly 80 million square feet of new data center space is scheduled to deliver by 2030 in Northern Virginia, with approximately 155 new office jobs estimated for every 300,000 square feet of space. This equates to the creation of more than 40,000 new jobs, given the 12.5 million square feet of space projected to be delivered over the next six years.

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, and office properties throughout the Mid-Atlantic region. The firm presently owns and manages a portfolio encompassing nearly eight million square feet of commercial properties located in Maryland, Washington, D.C., Virginia, Delaware, Pennsylvania, and North Carolina. For additional information visit www.finmarc.com.