GAINESVILLE, VA—For the second time in recent weeks, Buchanan Partners has bought out a partner in a jointly-held property. It acquired the full ownership of a three-building, 125,452 square foot flex/industrial property in Manassas, VA, earlier this year when its partner, New Boston Fund, told Buchanan Partners it was winding down its position in the asset.
Now, the company has bought out the majority interest of Atlantic Realty, B.V., in the Gateway Business Center here, for $14.3 million. The property is a four-building, 142,877-square foot flex office next to the Virginia Gateway Shopping Center.
"The partner was ready to sell to return capital and profit to investors," Colin Dove, project manager with Buchanan Partners, tells GlobeSt.com. "It is a Dutch investment group that we've done nearly two dozen deals with over the years and are still involved with on other projects. We liked the fundamentals enough to step in and become majority partner ourselves."
The relationship between the acquisition price and replacement cost was too hard to pass up, Buchanan Principal Brian Benninghoff, said.
Tenants in the fully-leased property include NCS' corporate headquarters, Kerxton Insurance, and Goodman Distribution. Gateway also is home to a restaurant and a brewery -- retail tenants that are growing features of flex centers located close to booming housing markets.
According to Benninghoff, Buchanan is seeking other story flex office and industrial products in this market.
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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.
