Stream Realty Leases Up Herndon Building With Department Of Interior, TJX Leases
The prospect of leasing up a half-empty, non-Metro accessible, 1980s-era office building outside the Beltway may seem daunting to some, but Stream Realty figured out a way to successfully execute just that in Herndon.
Stream Realty is two weeks from completing its $5M renovation at 381 Elden St., a 184K SF Herndon office building it acquired in 2015 and has rebranded as Dominion Point. The building was 49% leased when Stream acquired it, and during the renovation process it has now signed three new leases to bring the building to 90% leased.
Stream signed the Department of Interior for 30K SF, TJX Cos. for 14,500 SF and Fairfax Family Practice Centers for 23K SF.
While the building is not Metro-accessible, it sits within walking distance of a retail plaza featuring a Safeway, a Mom's Organic Market and a number of lunch spots. The building was built in 1987 and Stream Realty managing partner Kyle Luby said its old, '80s feel was turning off potential tenants.
"We basically took a project that was so antiquated that we wouldn’t want to occupy it ourselves, that had been leased by government tenants forever, and completely transformed it," Luby said. "We did a full 180 on the space."
The main feature of the $5M renovation was the building's large atrium, which Stream modernized and connected to a 90-seat conference center. This would allow tenants to host a conference that spills out into the atrium for a cocktail hour, something that would normally require renting space at a hotel conference facility. Stream also added a fitness center and locker room, which Luby said all office tenants expect in today's environment.
Once Stream finishes the renovations and moves in the new tenants, Luby said it will evaluate whether it plans to hold the asset or put it back on the market.
Stream began the year by hiring Matt Pacinelli from Penzance, with plans to grow its DC presence. Luby said the firm has since taken over the leasing of two downtown DC office buildings, 740 15th St. NW and 1112 16th St. NW.
