MERRIFIELD, VA—Corporate Office Properties Trust has scooped up Metro Place II, a fully-occupied 240,400-square foot office building here for $83 million, or $345 per square foot. The 10-story building is located at 2600 Park Tower Dr.
The REIT is using its line of credit to close the transaction and it plans to fund 60% of the purchase with proceeds from asset sales along with issuing shares from its ATM.
Among the attributes of the building for COPT: it is fully leased to defense contractors, it one of only two buildings located next to the Dunn Loring-Merrifield Metro Station, the purchase price is a discount to the building-only replacement cost of $320 per square foot and there is little chance of competing supply coming to market as there is no more developable land at the metro station.
Also, Inova Healthcare's recent purchase of Exxon Mobil's former campus kept 1.2 million-square feet of vacant office space from saturating the Merrifield submarket.
GlobeSt.com placed a call to COPT before office hours about the transaction. We will update the story accordingly.
This transaction follows a purchase the REIT made last month in Baltimore: it picked up 250 West Pratt St., for $63.5 million, from TIER REIT.
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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.
