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ARLINGTON, VA-Two years after developing the class A office building known as Virginia Square Plaza, New Boston Fund and the Meridian Group have handed the property over to Principal Financial Group in exchange for nearly $52 million. The 160,000-sf site cost $34 million or $214 per sf, to realize upon its July 2001 completion. Acting on behalf of the sellers, Spaulding & Slye marketed the property that, according to Arlington County records, has a 2003 assessed value of $38.5 million.

Indeed, there was a great deal of interest among hopeful buyers. “There was no asking price and the offer only went to 25 investors,” Spaulding & Slye Colliers capital markets associate James H. Molloy shares with GlobeSt.com. “At the end of the day, the top four of those investors were within $100,000 of each other in their bids.”

Carrying the address of 3811 North Fairfax Dr., Virginia Square occupies a prime one-acre spot in one of the top markets in the country, the Rosslyn/Ballston corridor, where the current direct vacancy rate is a low 7.8%, as per Advantis Real Estate Services Co.’s Mid-Year 2003 Office Report. The 10-story office structure also features 5,000 sf of ground-level retail space and a three-level subterranean parking facility to accommodate up to 250 vehicles. Virginia Square Plaza is home to the likes of strategy and technology consulting firm Booz Allen Hamilton, Science Applications International Corp. and the University of Southern California.

“There is a great appetite in the investment market today for high quality buildings such as Virginia Square Plaza, and this proved to be an ideal time to harvest the gains from this development,” New Boston Fund senior vice president and director of acquisitions James P. Kelleher says of the transaction. “The Meridian Group and New Boston Fund developed a tremendous building and the success of this sale is a testament to the quality of the asset and the success of our joint venture.”

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