SHIRLINGTON, VA—Dallas-based private equity managerVelocis just made its second acquisition in the area, and like its earlierpurchase, it is an office in the Northern Virginia area.

Other than that the two properties -- Shirlington Tower inArlington, VA, which it just acquired and two Class A office buildings in the Loudoun Gateway BusinessPark -- bear little similarity to each other eventhough they are being financed via the same fund. Shirlington Toweris a lease-up play, while the Loudoun properties are a cash-flowplay with significant upside, Paul Smith, aVelocis principal, told GlobeSt.com.

Well, there is one other commonality between the two: they bothwere reasonably priced. A few years ago, when Velocis was lookingfor investments for a prior fund, the Northern Virginia market wasincluded in the target cities. "We felt that the impact ofsequestration and BRAC had not been fully absorbed by the marketthen," Smith says. "In addition, we didn't see much job growtheither." Now, however, he said it is clear that the DC area hasbottomed and prices have adjusted.