FINMARC MANAGEMENT, INC. SELLS TWO-STORY, 27,000 SQUARE FOOT COMMERCIAL OFFICE BUILDING IN SPRINGFIELD, VA FOR $6.55 MILLION
Posted on: 06/06/2023

(June 6, 2023) – Finmarc Management, Inc., a diversified commercial real estate investment and management firm headquartered in Bethesda, Maryland, has announced the sale of 7375 Boston Boulevard, a two-story building containing nearly 27,000 square feet of commercial office space, to Costco Wholesale for $6.55 million. The asset is part of an 11-building portfolio comprising approximately 740,000 square feet of flex/office, industrial and data center space in Springfield, Virginia, which Finmarc acquired for $127.5 million from Boston Properties, Inc. (NYSE: BXP) last summer. The building, which is contained on a 2.81-acre parcel, was vacant at the time of the sales transaction. Geoffrey Mackler of H&R Retail and Daniel Venable of NWAP II, Inc. represented the buyer in this sales transaction. Joseph Hoffman of Kelley Drye Warren provided legal services to Finmarc.   

The VA 95 portfolio consists of single-story and two-story buildings ranging from 27,000 to 105,000 square feet of space, and are situated close to Fort Belvoir, the National Geospatial-Intelligence Agency and Marine Corps Base Quantico. The assets feature immediate access to Fairfax County Parkway and Interstate 95, and are contained within a quintessential last-mile delivery site that is situated approximately four miles from Springfield, 15 miles from Washington, D.C., 30 miles from Dulles International Airport and 95 miles from Richmond. More than 34,000 companies reside within the Northern Virginia region, and those companies employ more than 615,000 people.

7375 Boston Boulevard is located directly adjacent to an operating Costco Wholesale retail building, situated at 7373 Boston Boulevard. 

“Part of our decision when acquiring the VA 95 portfolio last summer was our belief of the strong opportunity to strategically sell certain buildings parcels for higher and better uses,” explained Finmarc Co-founder and Principal David Fink. “The building parcel situated adjacent to the existing Costco perfectly matched that profile and represents our first opportunity to execute this thesis. The national big-box retailer looms with an impressive presence in the business community and draws from an extremely large radius along the Interstate 95 corridor. The ability for Costco to expand its footprint makes perfect business sense in their continuing mission to find better and more efficient ways to provide best-in-class services to its members.”

The presence of Fort Belvoir, National Geospatial-Intelligence Agency and Marine Corps Base Quantico is a significant economic driver that helped produce record low vacancies for industrial real estate product. No new buildings are currently under construction and no new product has been delivered in the Newington/Springfield submarket over the past six years. 

At the time of Finmarc’s portfolio purchase last year, the company explained that “this acquisition continues Finmarc’s long-term investment strategy of identifying and purchasing institutional-quality assets with a compelling value-add component in suburban submarkets that demonstrate long-term strength and viability. We acquired this portfolio at below replacement cost and the in-place tenancy, which includes several federal government entities, will generate steady cash flow. We believe well-located and best-in-class flex/office and industrial buildings situated in the outer ring suburbs will continue to flourish and we remain extremely confident in the long-term economic fundamentals of the Springfield and Northern Virginia submarket.”

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