Northern Virginia Flex Park Trades for $142M
Gunston Commerce Center, a nine-building complex anchored by the GSA and other government contractors, was sold by I-95 Business Parks Management, which hired Avison Young last year to market the best-in-class industrial/flex business park for sale.
LORTON, VA—A multi-building nearly 600,000-square-foot industrial park, anchored by the General Services Administration and favored by GSA tenants due to its location in Northern Virginia between the Pentagon and the Marine Corps base Quantico, has been sold for $142 million.
Gunston Commerce Center, a nine-building complex, was sold by I-95 Business Parks Management, which hired Avison Young last year to market the best-in-class industrial/flex business park for sale.
While Avison Young in its announcement did not reveal the new ownership, a report in the Washington Business Journal citing sources stated that an affiliate of NGP, formerly National Government Properties, had closed on the purchase of the flex industrial business park.
“Gunston attracted considerable interest from investors because it offers a combination of best-in-class assets, high credit tenancy and tenants that are committed to the properties for the long term,” says John Kevill, principal of Avison Young. “It is rare that a sale with such a clear investment thesis comes to market in a suburban portfolio, and the new owner understands that space as well as anyone in the market. I suspect they will enjoy a strong cash flow for years to come.”
Overseeing the efforts for Avison Young’s Washington DC office were: Kevill and Jim Kornick, both principals; along with Chip Ryan, principal; and vice presidents Michael Murillo and Georgiana Condoiu.
The property on Richmond Highway or Furnace Road is 6.5 miles from Fort Belvoir, eight miles from the National Geospatial Intelligence Agency and 18 miles from both Quantico and the Pentagon. The complex is located close to I-95 at Exit 161 and directly off of Route 1near the Virginia Railway Express.
The park’s nine buildings are all constructed to meet rigorous government security standards, Avison Young states. The designs are flexible for uses ranging from office and warehouse to R&D and retail.
Avison Young’s Kornick notes that I-95 Business Parks Management “took tremendous care to develop the highest-quality properties possible and created strong relationships with the tenants. The properties are thus well-positioned for future rental growth as the demand increases for quality properties in this market that can serve the GSA and its contractors.”
Kevill adds that this transaction “demonstrates that a Northern Virginia property providing investors with a differentiated story can still achieve a premium sales execution. As we begin 2019, our view is we will see more of this type of sale, where the difference maker to the market is a clear long-term value proposition.