Tysons Office Sale Closes At $6M Discount From Contract Price
WashREIT has closed on its sale of a Tysons office building, but the final price was $6M less than what it told investors it had reached an agreement on in February.
The REIT said in its Q1 earnings report last week it closed April 21 on the sale of the John Marshall II office building at 8283 Greensboro Drive for $57M.
The announcement came after WashREIT told investors in its Q4 earnings report in February it reached a contract to sell the building for $63.4M. The REIT acquired the building in 2011 for $73.5M, property records show. WashREIT did not respond to requests for comment, but CEO Paul McDermott addressed the sale on its Wednesday earnings call.
“Following the sale of John Marshall II for $57M on April 21, which was a critical execution as we continue to derisk our portfolio, we have further improved our liquidity position," McDermott said on the call, according to a SeekingAlpha transcript.
The Meridian Group acquired the property, it announced Friday, further expanding the developer's portfolio in Tysons. JLL Executive Managing Director Stephen Conley brokered the sale.
The nine-story, 223K SF office building was built in 1996 and is occupied by Booz Allen Hamilton's global headquarters. The consulting firm in 2016 renewed its lease through 2026.
The deal closed three weeks after Meridian acquired two other Tysons office buildings, and six months after it completed construction on The Boro. Meridian also owns additional office buildings near The Boro, which it has dubbed EastBoro and said it will "annex the property into The Boro District" in a release.
Meridian declined to comment on the price. Conley didn't immediately return a message seeking comment.
“The property’s location and physical connectivity to our EastBoro portfolio made it a strategic investment for us, and we want to thank all parties involved in pushing this transaction across the finish line in these challenging times," The Meridian Group Chief Investment Officer Gary Block said in a release.
