GERMANTOWN, MD-Matan Cos. has acquired a four-office portfolio in Germantown from Bentall Kennedy. A spokeswoman for Matan confirmed the acquisition but was unable to immediately provide further information.

A source tells GlobeSt.com that the portfolio traded for roughly $129 million.

According to public records the sale includes four office buildings in Milestone Business Park – Buildings No. 1, 2, 4 and 5. They total approximately 625,000 square with additional FAR for several multifamily and office development. The portfolio is 82% occupied.

Matan purchased the portfolio through its Matan Fund IV, which we reported on here last year. Over the next 24 months, principal Mark Matan told GlobeSt.com at the time, the fund will invest one-third of its activity in multifamily development; one-third in its usual government build-to-suit; and one third will be in suburban office market acquisitions.

This deal follows FCP's acquisition of another suburban office asset, when it picked up One Preserve Pkwy in Rockville, MD for $61.25 million at the end of December.

These two deals back to back does raise an interesting question: Is suburban office making a comeback, at least among some buyers?

To be sure, the asset class is still viewed with suspicion by most investors. However smaller local firms appear willing to take well-measured bets on certain assets.

Instant Insights /

Matan Buys Suburban Office Portfolio for $129M

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