FALLS CHURCH, VA—The Suffolk Building has traded for $96.7 million.
A McLean, VA-based investor, NGP VI Fund, acquired the 258,248-square foot, fully leased property from institutional investors advised by J.P. Morgan Asset Management. A JLL team headed by Bill Prutting and Joe Brennan brokered the transaction, representing the seller.
The property is located at 5611 Columbia Pike.
The US General Services Administration signed a 10-year lease renewal for the entire building on behalf of the Department of Defense in the fall 2013. That the deal closed during the sequestration and during a time of regulatory and budgetary uncertainty is a testament to the building and its buyer, Prutting tells GlobeSt.com. "It made the building that much more appealing and that much easier to sell."
JLL's client felt the time was right to exit the building, Prutting says. The buyer, meanwhile, was delighted to find a government-occupied in its own backyard that met its investment criteria. Buildings in DC that are occupied by the government tend to have 15 to 20-year leases, which do not quite deliver the yields that the fund has promised investors, he explains. With a shorter term the yield goes up slightly and the transaction is priced differently.
Located near the intersection of Columbia Pike and Route 7 in the Bailey's Crossroads/Skyline submarket, the Suffolk Building was originally developed in 1964 as a single-asset for the US government. The building underwent a $40 million renovation in 2003.
Other members on the JLL team include Jim Molloy, Marc Rampulla, Jason Dewitt, Brian Saal and Lucy Kitchin.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
