The 253,000-sf building is located in the relatively small Merrifield submarket, a part of Northern Virginia that is enjoying very low vacancy rates and strong investment sales. "It's a very strong submarket," John Molloy, managing partner of Investment Management with Hart Realty, tells GlobeSt.com. "There have been any number of comparable sales at sub 6 cap rates here recently. Pricing for this particular deal came in along the lines of our expectations." He says the deal had been marketed for 60 to 75 days, with some 10 bidders making an offer.
At $381 per sf, the acquisition price is close to other trades here, Tonya Ginter, research director for GVA Advantis tells GlobeSt.com. A year ago, 8260-8280 Willow Oaks Corporate Dr.--two buildings that are both classified as class A--sold for $324.09 per sf, she notes.
Vacancies are very low in this area, Ginter also says. "The vacancy rate in Merrifield is 4.4%, which is one of the lowest rates in Northern Virginia and Fairfax." The area has rebounded dramatically since 2004, when vacancies were as high as 11.6%.
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