Located at 6196 Oxon Hill Rd., the six-story, class B building is 95% occupied. Gerald Burg, Jim Kornick and Matthew Clinebell in the Washington, DC office of Marcus & Millichap's Healthcare Real Estate Group were the sole brokers in the transaction.
Kornick tells GlobeSt.com that one reason the buyer acquired the building was its belief that the submarket is poised to benefit from the National Harbor Development, a large mixed-use project currently under development by Peterson Cos., and is about a mile away from Riverview.
National Harbor is expected to add more than one million sf of retail, 500,000 sf of class A office space, a 4,000-room hotel at the Gaylord Resort and more than 2,500 residential housing units, Kornick says. "That was a big part of our sales pitch--that the buyers are investing in the future of this development and, subsequently, this area."
Already, Kornick says, Oxon Hill is receiving some benefit from the nearby development. He points to a recent deal--a 178,000-sf, class A office building, called Riverview, that sold in February 2005 for $156 per sf.
In general, medical office buildings in the DC area are trading at a premium because of limited supply due to space and regulatory factors. Last year, as reported in GlobeSt.com, Washington Real Estate Investment Trust, paid a record $429 per sf for three of the four buildings in the Shady Grove/Plumtree medical office portfolio.
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