Bridge Makes 3rd D.C.-Area Acquisition This Year With Reston Office Buy
Bridge Investment Group has been on a nationwide acquisition spree this year, and it made the D.C. suburbs a focal point of its buying activity.
The Salt Lake City-based investor bought The Campus at Sunrise, a three-building Reston office complex, from Grosvenor Americas, and the buyer plans to soon launch a $5M renovation of the property.
The deal, the price of which was not disclosed, is the third acquisition Bridge has made in the D.C. suburbs this year. In April, the investor bought a two-building Bethesda office property, and in August it bought a 399-unit Silver Spring multifamily community.
The Campus at Sunrise last sold in 2011 for $63M, property records show. The three-building, 225K SF complex at 11190 Sunrise Valley Drive sits on a 12-acre site less than a mile from the Wiehle-Reston East Silver Line station. It was constructed between 1987 and 1990.
Bridge Commercial Real Estate CEO Jeff Shaw said the investor was drawn to the Wiehle-Reston East area because of the major pipeline of mixed-use projects planned and under development.
"We've been impressed with some of the changes happening in the market when you look at Reston as a whole and the Metro station, with 3,000 residential units and 250K SF of retail delivering over the next few years," Shaw said. "We like the dynamics of the market."
The three-building complex is 85% leased. Bridge plans to invest over $5M in renovations, including updated lobbies, revamped amenities and built-out spec suites. It will also offer a calendar of special events and entertainment for tenants. The investor retained Cushman & Wakefield to lease the property.
Since buying the Bethesda office complex, which it renamed Skybridge Towers, Bridge has signed 174K SF of leases and has another 134K SF of deals in active negotiations. Shaw said Bridge's strategy centers around buying suburban properties and investing in renovations to bring in new tenants and add value.
"I think there's been a push out of the urban areas because of increased cost, where companies are moving out more toward the suburbs," Shaw said. "There's an opportunity for investors to come in and take these buildings that have good bones and modernize them."
Bridge has bought 4M SF of office properties across the U.S. this year. The investor acquired a 13-building portfolio from Piedmont Office REIT in January and has since bought additional office properties in the Chicago and Atlanta metro areas. Shaw said D.C. remains a major focus of its investment strategy and it plans to look at additional suburban assets, and potentially some in the central business district.
"As we're deploying our current fund and getting into our next fund, [D.C.] is a market that we really like and love the fundamentals of, so we continue to look for opportunities," Shaw said.
