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HERNDON, VA-Just like it said it would do, Washington, DC-based Republic Property Trust has closed on the five-story, class A Dulles Park Technology Center at 13461 Sunrise Valley Dr. Meanwhile, Republic inks an expansion with Honeywell International Inc. in an adjacent building.

The Honeywell deal adds 2,698 sf to its lease in the Campus at Dulles Technology Center at 13655 Dulles Technology Dr. Honeywell now fills 31,561 sf in the structure.

Republic announced last month that it was under contract to buy the 181,000-sf office building from Hartford, CT-based Cornerstone Real Estate Advisors for $48.3 million or $267 per rentable sf. The asset is 30% empty, which was reflected in the initial capitalization rate of 5.23% on the purchase price. Once the property is stabilized, the cap rate is projected to climb above 7%, according to Republic.

In previous statements Republic has said it plans to raise rents to help stabilize the new acquisition. It claims the average in-place rents of $25 per sf at Dulles Park Technology Center are below market rates.

Tonya Ginter, research director with GVA Advantis in Washington, DC, reports rates are indeed starting to increase “quite a bit” in the Herndon-Reston submarkets. Class A space is $27 per sf, she says.

Dulles Park Technology Center should have little difficulty in attracting tenants, even as it raises rents, Bob VeShancey, senior vice president with Jones Lang LaSalle in Tyson’s Corner, agrees. He tells GlobeSt.com that vacancies are approaching single digits in that submarket, with building owners looking to push rental rates to the high $20 per sf or more.

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