First Office Investment in Virginia Includes Plans for Amenity Renovations, Leasing Program
Grubb Properties has acquired a nearly 275,000-square-foot office building in Fairfax, Virginia, marking its first investment in the Washington, D.C. metropolitan area.
The property, known as Argon Plaza, is located within the Fair Lakes master-planned community and features high visibility from and easy access to I-66. The property is within walking distance to numerous amenities including a Whole Foods, Starbucks, and Hyatt Regency hotel. The mixed-use neighborhood contains more than 1 million square feet of retail and restaurants within a half-mile of the property.
Grubb Properties purchased the property for $38.8 million, or approximately $141 per square foot, from C-III Asset Management, in a transaction handled by HFF and NAIGlobal. Grubb Properties will make capital improvements to the building that will upgrade its tenant amenities. In addition, it will conduct a leasing program for the property. The overall cost basis is expected to be at a substantial discount to replacement cost.
The property’s anchor tenant, a defense contractor specializing in military technology and intelligence, occupies more than 50% of the building and recently signed a five-year lease renewal.
“With its amenity-rich, densifying location and strong anchor tenant, Argon Plaza is a perfect addition to our growing office portfolio,” said Todd Williams, chief investment officer at Grubb Properties. “We look forward to making Argon Plaza a leading property for both existing and new tenants.”
This is the first office building investment in Virginia for Charlotte-based Grubb Properties, one of the Southeast’s leading real estate investors. The company has previously invested in the state’s multifamily market, including Link Apartments® Manchester and Sterling Beaufont Apartments, both in Richmond.
Grubb Properties, founded in 1963, creates exceptional real estate environments and provides premier customer service for our residents and tenants through the repositioning of apartment communities and office buildings and the development of multi-family communities, including our nationally trademarked Link Apartments® brand. Our fully integrated management team identifies strategies that create long-
term value for our clients. Grubb Properties’ growth is primarily funded through real estate investment funds with long-term horizons. People who care. Places that matter.
