Tysons Office Leased to Freddie Mac Commands $81M
A joint-venture between Northridge Capital and KAMCO Investment Co. has acquired 1550 Westbranch Drive, a 151,949-square-foot office building in Tysons, Va., for $80.5 million.
The pair picked up the building from Rubenstein Partners and Griffith Properties, according to Newmark (NMRK) Knight Frank, which facilitated the deal on behalf of the sellers. The brokerage also helped secure a five-year, fixed-rate mortgage for the buyers from Citizens Bank.
Freddie Mac (FMCC) signed a full-building lease in May, and is in the process of building out the space and moving in.
Originally built in 2001, Rubenstein acquired the six-story building four years ago for $27.75 million. At the time, Mitre Corp. was its lone tenant, but the company exited in 2016 and ownership repositioned and rebranded the property as Centerstone at Tysons.
“They are value-add investors and acquired the property, which was leased at the time, knowing they would be vacating, so they recommissioned the asset and then leased it in entirety to Freddie Mac, so they sold with the optimal amount of lease term in place,” Jud Ryan, NKF’s executive managing director, told Commercial Observer.
The renovation included upgrading the lobby, adding a smart cafe, enhancing the conference center, and improving the landscaping.
“What we created at Centerstone at Tysons is the kind of differentiated workplace experience modern tenants are seeking,” Read Mortimer, Rubenstein’s senior vice president, said in a prepared release.
According to Ryan, the property is situated in a dynamic submarket, making it well positioned to capitalize on Tysons’ transformation.
“The majority of the surrounding buildings are planned to be redeveloped into multifamily and retail, which will create a more mixed-use immediate neighborhood,” he said.
Joining Ryan in representing the seller was NKF’s James Cassidy. The firm’s Joseph Donato and Kassi Saridakis secured the mortgage.