Nine-Building Property in Highly Coveted Location in Northern Virginia Sells for $142 Million
Avison Young announced today that it has arranged the sale of a best-in-class industrial/flex business park ideally located near major defense, intelligence and homeland security installations.
Gunston Commerce Center in Lorton, Va. sold for $142 million. The park, which features nine buildings, is situated between the Pentagon and the Marine Corps Base Quantico – a location perfect for security-conscious General Services Administration (GSA) tenants.
“Gunston attracted considerable interest from investors because it offers a combination of best-in-class assets, high credit tenancy and tenants that are committed to the properties for the long term,” said John Kevill, Principal of Avison Young. “It is rare that a sale with such a clear investment thesis comes to market in a suburban portfolio, and the new owner understands that space as well as anyone in the market. I suspect they will enjoy a strong cash flow for years to come.”
Avison Young’s Washington office was chosen to market and sell the property. Overseeing the efforts were Kevill and Jim Kornick, both Principals; along with Chip Ryan, Principal; and Michael Murillo and Georgiana Condoiu, both Vice Presidents.
Gunston Commerce Center is leased to a roster of tenants anchored by the GSA and key government contractors. The park includes approximately 600,000 square feet of rentable area in nine buildings, all constructed to meet rigorous government security standards. The designs are flexible for uses ranging from office and warehouse to R&D and retail.
“The current ownership took tremendous care to develop the highest-quality properties possible and created strong relationships with the tenants,” Kornick said. “The properties are thus well-positioned for future rental growth as the demand increases for quality properties in this market that can serve the GSA and its contractors.”
Each of the buildings is located on Richmond Highway or Furnace Road, just 6.5 miles from Fort Belvoir, 8 miles from the National Geospatial Intelligence Agency, and 18 miles from both Quantico and the Pentagon.
“This location puts Gunston Commerce Center in a corridor that’s strategically important to major government agencies, including the Department of Defense, the Department of State, the Department of Justice and the Department of Homeland Security,” Kornick said. “That, in turn, attracts businesses and firms that provide key services to those agencies.”
Added Murillo: “With the right ownership and approach to government tenants in locations like this, users often remain in place through functional obsolescence, which can be for 20 or 30 more years given the property quality and location at Gunston Commerce Center.”
Another selling point for the park: It’s conveniently located close to I-95 at Exit 161 and directly off of Route 1. The park is also near the Virginia Railway Express (VRE), with a shuttle service there provided as an amenity to tenants.
“This deal demonstrates that a Northern Virginia property providing investors with a differentiated story can still achieve a premium sales execution,” Kevill said. “As we begin 2019, our view is we will see more of this type of sale, where the difference maker to the market is a clear long-term value proposition.
“We’re looking forward to another strong year,” Kevill added.
ABOUT AVISON YOUNG
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,600 real estate professionals in 84 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial, multi-family and hospitality properties.
