FAIRFAX, VA-The class A office structure at 12601 Fair Lakes Circle has commanded $55 million in a deal between local developer Gilbane Building Co. and buyer Texas-based Prentiss Properties Trust. Known as the AMS Building–as it is completely occupied by consulting company American Management Services–the 264,000-sf building was a hot property in the very tight northern Virginia office market. The direct vacancy rate in the market is 12.1%, and in the city of Fairfax, the direct vacancy rate is 5.6%

Located within the 660-acre Fair Lakes Business Park just 15 miles outside of Washington, DC, the 10-story building went on the market in August through Eastdil Realty, and Prentiss sealed its successful bid for the property in October. The sole tenant holds its lease on the space through 2011, and pays $19 per-sf, a figure that increases annually by 2%. “We developed the property 10 years ago,” Gilbane president Robert V. Gilbane tells GlobeSt.com. “After examining our portfolio and beginning the purchase of a larger property, we decided to recycle the Fairfax facility. We are active in the Mid-Atlantic region and look forward to our next acquisition and continued success in this vibrant marketplace.”

For the buyer, the purchase was in line with the company’s current strategy. “This acquisition meets our goal of strategically upgrading our portfolio in markets where we have a strong operational presence,” Prentiss president and CEO Thomas F. August says in a statement. “We have essentially replaced the income from the older, single-story industrial properties and from an asset in a non-core location with stable income from a well maintained, modern Class A office property located in one of our core markets.” The AMS Building brings the company’s Washington region portfolio up to 3.9 million sf of existing office space.

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