Rosslyn Office Trades for $57M

ROSSLYN, VA-Salus Property Investments has acquired 1400 Wilson Blvd., a 108,296-square-foot office building here for $57 million. Great Point Investors LLC was the seller, represented by HFF’s Jim Meisel and Dek Potts.

The Department of State is leasing the entire building through March 2012. The 12-story building was originally built in 1965 and renovated in 2009. There is still significant redevelopment potential, Meisel tells GlobeSt.com, which figured into the pricing. “This priced right after Labor Day and we weren’t sure what to expect after the turmoil of the summer,” he says. “But if anything, folks have gotten more appreciative of yield, especially credit yield, and that was reflected in this transaction.”

The building last traded in 2001 for $22.4 million, or $206 per square foot, acquired in a joint venture of Buchanan Partners and an undisclosed investment group that was represented by Great Point Investors, according to GlobeSt.com’s report at the time.

Earlier this month, Goldman Sachs closed on Lehman Bros.’ stake in a 3.2-million-square foot office portfolio here for $1.25 billion. It too included redevelopment opportunities.

Salus Property acquired 1400 Wilson Blvd. free of debt. Besides the redevelopment potential, Meisel calls the building “a good coupon clipper for the buyer because it has the government there for at last ten more years.”