FALLS CHURCH, VA-Two 13-tower office buildings that total 399,049 square feet and a development site that can accommodate another 200,000-square foot office building have sold for roughly $86 million. The buildings, Falls Church Corporate Center, are located at 6400 & 6402 Arlington Blvd. They are 88% occupied and trading at a mid 6 cap rate, in place. When the property stabilizes the cap rate is expected to settle at mid 7.

The property was acquired by the JBG Cos. from Pearlmark Real Estate Partners. Transwestern's DC Institutional Commercial Group brokered the sale on behalf of the seller. The building has undergone a renovation in recent years, Gerry Trainor, executive managing director of Transwestern tells GlobeSt.com. “JBG’s game plan is to lease it up and enjoy the cash flow,” he says.

The complex’s location make it ideal for that strategy. Located close to the Rosslyn-Ballston Corridor, rental rates still go for $10 per square foot less than the RB, he says. “This building has attracted a lot of tenants from Tysons. You are less than a quarter of a mile from the Falls Church metro and close enough to Ballston for lunch if you want. It is a great inside-the-Beltway location.”

Renovations made in 2009 included new lobbies, restrooms, common corridors, windows, HVAC equipment and EMS system.  Tenants include BB&T Bank, Kastle Systems and the Centech Group. 

Investment sales in Northern Virginia are gaining traction, according to research figures from Transwestern’s research affiliate Delta Associates. For Q2 of 2011, they totaled  $483 million, compared to $373 million in Q1. For the first half of 2011, investment sales totaled $856 million, compared to $219 million in the same period of 2010.