Turnbridge, Fundamental JV Sells $220M Northern Virginia Office Portfolio

Turnbridge Equities and its joint venture partner Fundamental Advisors LP sold their five-building, 860,000 square foot Northern Virginia Cybersecurity and Defense Infrastructure portfolio for $220 million.

Turnbridge and Fundamental began assembling the portfolio in 2018 to mitigate the rollover risk related to single-tenant occupancy by creating a multi-tenant portfolio with staggered lease terms and diversified tenancy. The joint venture acquired each of the five buildings in separate transactions and renewed each of the expiring leases at accretive terms throughout its ownership of the portfolio. Serving as corporate and division headquarters for multiple tenants, the portfolio provides functionality for sensitive defense and national security work that its tenants complete on behalf of their clients.

The five office properties include 460 Herndon Parkway, Herndon, VA (205,074 square feet); 14700 Lee Road, Chantilly, VA (84,652 square feet); 21700 Atlantic Boulevard, Sterling, VA (112,623 square feet); 12450 Fair Lakes Circle, Fairfax, VA (184,414 square feet); and 10302 & 10304 Eaton Place, Fairfax, VA (273,713 square feet), which are 96% leased to defense contractors including Lockheed Martin Corp. General Dynamics Corp., Boeing, and Northrop Grumman Corp.

The portfolio is located throughout Northern Virginia, where approximately 10% of all federal contract spending and nearly 80% of all cyber contracts in the nation are captured. The portfolio is located close to multiple government, defense and intelligence agencies, abundant fiber connectivity and access to the local transportation network.