RESTON, VA—Lake Fairfax Business Center 7 and Lake Fairfax Business Center 5 are trading for approximately $113.3 million to Government Properties Income Trust, based in Newton, MA. The REIT is acquiring the 406,388-square foot portfolio from Polinger Shannon & Luchs Co. Cassidy Turley brokered the transaction.

The REIT quietly announced the news in its recent earnings call, noting that it entered into the agreement in December 2013. The property is 100% leased to the US Government. The contract purchase price is $113.3 million includes the assumption of $83 million of mortgage debt and excludes acquisition costs.

The deal is set to close after the mortgage assumption is approved by the lender.

Lake Fairfax Business Center 7 is located at 1760 Business Center Dr. It is 277,200-square feet and last traded in April 2006 for $79.2 million.

Lake Fairfax Business Center 5 is located at 1759 Business Center Dr. Like its sister building, the 143,750-square foot building last traded in April 2006, for $37.8 million. Both were built in 1987.

The REIT is reshuffling its portfolio in the area; it has also acquired a 83,130-square foot office property in Fairfax, VA fully leased to the US government for $19.8 million, including the assumption of $14.5 million of mortgage debt and in April it entered into a contract to sell a property in Falls Church, VA.

This property has 164,746 rentable square feet and a net book value of $12.5 million. The contract sales price is $16.5 million and the sale is expected to close in 2015, subject to certain conditions, including the purchaser getting certain zoning entitlements. Accordingly, the REIT said in its earnings statement, it "can provide no assurance that it will sell this property or that this disposition will not be delayed or that the terms will not change."

Instant Insights /

Government Properties Buys Fairfax Asset for $113M

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