HERNDON, VA-Parmenter Realty Partners has acquired 460 Herndon Pkwy, a 205,074 square foot office building situated on 10 acres of land. The price was undisclosed. The building is currently 96% occupped with no near-term rollover.
American Fund US Investments, LP, was the seller. It was represented by Andre Kinney, COO of Real Estate Capital Partners and the Washington, D.C. Capital Markets group of Cushman & Wakefield, Eric Berkman, Steve Gichner and Andrew Asbill.
Parmenter is planning on more acquisitions in the area and has opened an office to lead this push. The office is headed by Chris McGrew, managing principal.
Herndon is slowing coming back from the double whammy of the Great Recession and then the fiscal and budget uncertainty from Capitol Hill. The latter is still having an impact, Gichner tells GlobeSt.com. “Unfortunately what is going on with the government and government contractor’s space is clearly impacting short-term demand but for the long term the market is well positioned.”
Sales in the Reston-Herndon Corridor are off by 10% to 15% from where they were 12 months ago. Today, Gichner says, buildings in Herndon trade anywhere between $85 per square foot to $475 per square foot. “There is still a significant demand for core, stabilized real estate that will get you through the short-term uncertainty,” he says. But how long this short-term period will actually last is anyone’s guess, Gichner says. “A year ago, I thought I knew the answer to when Herndon’s inflection point would come, but I was wrong. As long as Washington keeps kicking the can down the road we will be in the same quandary.”