Charlotte Firm Makes First D.C.-Area Investment With Fairfax Office Acquisition
Charlotte, North Carolina-based Grubb Properties is moving up the East Coast with its first D.C.-area acquisition.
The firm announced Friday it acquired Argon Plaza, a 275K SF Fairfax office building, from C-III Asset Management for $38.8M. HFF and NAI Global brokered the deal.
Argon Plaza is part of the Fair Lakes mixed-use community at the interchange of Interstate 66 and Fairfax County Parkway. It sits next to the Hyatt Regency Fairfax and about a quarter-mile from the Fair Lakes Shopping Center.
The building's anchor tenant, The Boeing Co., occupied over 50% of the property and recently signed a five-year renewal. Grubb Properties plans to upgrade the building's amenities to help lease the remaining available space.
The property was transferred to C-III, a loan special servicer as part of a multi-property foreclosure deal in 2016. Shorenstein Co. defaulted on a $116.5M CMBS loan, which covered a nine-building portfolio, and forfeited the property to U.S. Bank, which transferred it to C-III. Shorenstein bought the building at 12701 Fair Lakes Circle, now named Argon Plaza, in 2007 for $84.6M.
Founded in 1963, Grubb Properties owns over a dozen office properties in North Carolina and nearly 20 residential properties in Georgia, South Carolina and North Carolina. This is its first acquisition in Virginia and in the D.C. region.
