TYSONS, VA—The REI store located at 8209 Watson St., has traded for $22 million, or approximately $650 per square foot in an off-market deal. The newly-opened 34,000-square foot store is being acquired at a 5.2% cap rate. It was a 1031 acquisition and the buyer viewed the trade as a generational opportunity, says Calkain Cos. managing director Andrew Fallon, who, together with director Jon Florin, arranged the sale. The seller is affiliated with SPMC Urban Properties and Finmarc Management.
The sale follows a record-breaking trade nearby of CVS for $24.7 million, and a sub 5 cap rate.
This trade, as well as the CVS deal that preceded it, continues to emphasize the demand for trophy net lease properties in core markets, Fallon tells GlobeSt.com.
"Investors such as this buyer are looking for both stable properties but also places to park their money where there is long-term potential and upside," he says. Tysons, as it continue to evolve into a major market of its own right and not just an extension of Washington DC, fits that description.
"It is the same story in any major gateway city," Fallon adds. "Infill net lease properties have more much value than just net lease investments."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.