Grubb Properties Enters DC Area With Office Purchase
The overall cost basis is expected to be at a substantial discount to replacement cost.
FAIR LAKES, VA–Charlotte, NC-based Grubb Properties has acquired a nearly 275,000-square-foot office building here, marking its first investment in the Washington DC area. The building is called Argon Plaza and its traded for $38.8 million, or approximately $141 per square foot. It acquired the building from C-III Asset Management, with HFF and NAIGlobal handling the deal.
Grubb Properties will make capital improvements to the building, upgrading its tenant amenities. It will also conduct a leasing program for the property. The overall cost basis is expected to be at a substantial discount to replacement cost.
The property’s anchor tenant, a defense contractor specializing in military technology and intelligence, occupies more than 50% of the building and recently signed a five-year lease renewal.
Grubb Properties is invested in the state’s multifamily market, including Link Apartments Manchester and Sterling Beaufont Apartments, both in Richmond.