RESTON, VA—The Coretrust Capital Partners and Normandy Real Estate Partners JV has closed on the acquisition of Reston Metro Center One and Two.
The two companies have teamed up before to buy properties in the Northern Virginia market: in May they purchased Fair Oaks Plaza, an eight-story 179,282-square foot office that was 86% leased at the time. The companies purchased the existing mortgage note from a special servicer out of a CMBS trust.
At the time, Coretrust Capital Partners managing principal John Sischo told GlobeSt.com that the JV would be making additional investments in Northern Virginia.
The company will mainly target marketed assets and some offmarket properties in the value-add to core plus category, he said.
Sischo, along with partners Thomas Ricci and Randall Scott, held senior management positions at Thomas Properties Group. Another partner, Charles Toppino, was the founder of Oak Pass Capital.
Coretrust financed the acquisition of its latest acquisition through an A/B loan restructuring of the existing mortgage notes with loan servicer LNR.
The pricing was not disclosed.
A substantial capital improvement program is planned with the goal of repositioning and leasing up the properties.
Reston Metro Center includes the 5-story Reston Metro Center One and 2-story Reston Metro Center Two. Together the properties comprise 185,480 square feet. Both buildings are located on the Dulles Toll Road.
The buildings are located in the newly approved Reston Town Center Station Transit Oriented Development District.
The Reston Town Center Metro Station will open in 2018 with ridership forecast in excess of 100,000 per day.
The JV will jointly manage the properties and has retained Jeff Roman and John DiCamillo of CBRE to provide leasing services. "We have no doubt that we will successfully execute our plan to re-tenant, reposition and rebrand the properties while providing our signature customer service," Coretrust's Scott said in a prepared statement.
Reston Metro Center One and Two were called Reflections I and II.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
