FINMARC MANAGEMENT, INC. SELLS 25-ACRE PARCEL CONTAINING OFFICE AND R&D/WAREHOUSE BUILDINGS IN LOUDOUN COUNTY, VA FOR $60 MILLION
Posted on: 06/08/2024

Finmarc Management, Inc., a diversified commercial real estate investment and management firm headquartered in Bethesda, Maryland, has completed the sale of a 25.29-acre site located at 19886 Ashburn Road in Loudoun County, Virginia for $60 million. The new owner, JK Land, intends to develop a new 360,000 square foot data center on the parcel in an undetermined timeframe. The property, which contains a commercial office building, a R&D/warehouse structure is fully-entitled to support this specialized data center use with site plan approval from Loudoun County.  Ryan Goeller of KLNB represented JK Land and CBRE’s Rob Faktorow, Josh Greenberg, and Anna Faktorow represented Finmarc in this transaction. Aaron Rosenfeld of Kelley Drye & Warren LLP provided legal services to Finmarc.

Finmarc Management acquired the site, which includes a three-story, 110,000 square foot commercial office building and a nearly 80,000 square foot single-story industrial/R&D structure, in 2019. The two-building portfolio currently serves as the global headquarters for Telos Corporation, a cybersecurity industry that, together with its various subsidiaries, provides information technology solutions and services to the military, intelligence and civilian agencies of the federal government and NATO allies. Telos has occupied the facility since 1988.

Situated at the intersection of Ashburn Road and Leesburg Pike (VA Route 7), the warehouse/research and development component of the portfolio is equipped with 18-20 square foot ceiling heights, four dock-high and two drive-in loading doors. A large surface parking lot surrounds both buildings. With its placement adjacent to Leesburg Pike in Loudoun County, the properties are positioned eight miles from Dulles International Airport and close to numerous amenities including Belmont Chase Center, Ashbrook Commons, One Loudoun, and Lansdowne Town Center.

According to CBRE, Northern Virginia continues to lead the world in data center demand and market growth, and the imbalance between supply and demand has created significant competition for every available block of capacity, resulting in year-over-year rental rate increases of 35 percent. The brokerage firm further states the more than 425 megawatts of net new absorption occurred last year in the region, keeping vacancy below one percent for the second consecutive year.

Virginia is home to the largest data center market globally and more than 35 percent of all known hyperscale data centers are contained in this region, according to the Virginia Economic Development Partnership (VEDP). The sector benefits from densely-packed fiber backbones, an advantageous cost environment centered on a competitive tax rate, affordable and abundant electricity, and competitive construction costs, states VEDP.

Loudoun County is considered among the fastest-growing counties in the nation with the highest median household income in the United States since 2007, an average household income exceeding $206,000, and an employment base of nearly 230,000 workers.

“This transaction demonstrates the ability and effectiveness of our team to recognize strategically-located assets in diverse asset classes and substantially maximize the value of the property during our hold period,” explained Finmarc Co-founder and Principal David Fink. “The buyer acquired a property with appropriate entitlements in place to develop a new data center in a market that continues to experience supply constraints.

“We continue to aggressively search for emerging real estate opportunities throughout the Mid-Atlantic and Carolina regions, and fully intend to redeploy the funds generated by this sale to reach our acquisition goals. Our team is particularly interested in acquiring under-performing properties that provide us with the opportunity to create long-term value with the implementation of our proven leasing and asset management protocols,” Fink added.   

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 approximately seven 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.