American Real Estate Partners Acquires Office Asset
The firm plans to implement renovation upgrades to the Greater Washington DC area office building.
TYSONS, VA – American Real Estate Partners (AREP) has acquired the class-A office building, 1660 International Drive in Tysons Corner, VA.
The eight-story, 212,731-square-foot asset includes a recent 8,000-square-foot amenity suite addition, completed by prior ownership.
Located near neighboring amenities and retail offerings at Tysons Galleria mall and one of the largest mixed-use development projects within the greater Washington DC metropolitan area, The Boro, the office building additionally situated near the recently completed Silver Line Greensboro Metro station, providing direct access to Washington DC and soon, Dulles airport. The property also offers access to primary Northern Virginia thoroughfares, including I-495, Dulles Toll Road and Routes 7/123.
AREP plans to implement contemporary design upgrades to the main lobby and common areas, as well as new amenities programs in conference facilities, collaborative spaces and outdoor lounge areas. The space is currently 98.5% leased.
The office asset was acquired by an affiliate of AREP’s Strategic Office Fund II LP, a fully discretionary vehicle, in a joint venture transaction with an institutional partner. Prior to the acquisition, the property had been institutionally owned since construction in 1999.
The purchase marks the fund’s eighth transaction. The firm’s Strategic Office Fund II has acquired more than $900 million in assets to date.
Since vacancy in Tysons peaked in 2014, the area is steadily experiencing significant rent growth. With occupancy levels and office rents currently rising, AREP aims to leverage the upward market momentum and capitalize on the community’s demand by expanding its Tysons footprint.
Complementary with its recent transaction, the firm has additionally divested interest in CityView, a ground-up trophy office project in Tysons.
American Real Estate Partners (AREP), founded in 2003, is an institutional fund manager and operating partner. Focusing on office and mixed-use repositioning and development projects throughout the Greater Mid-Atlantic region, the firm has deployed more than $3.6 billion and has acquired more than 16 million square feet of class-A real estate.