The Meridian Group has acquired two office buildings totaling 429,671 square feet in Tysons, Va., for $58.25 million, with plans to invest in the lease-up of the properties.
The buildings, both eight-story Class B properties, are the 172,957-square-foot 1951 Kidwell Drive, which is 75 percent leased, and the 256,714-square-foot 1953 Gallows Road, which is 55 percent leased.
“The majority of the capital invested into the property will be to lease up existing vacancies,” Gary Block, a Meridian partner and its chief investment officer, told Commercial Observer. “Meridian is planning a capital project to drive leasing activity, including a modest renovation of the amenities and common areas as well as updating the back of the house.”
Both buildings are situated at the intersection of Route 7 and the Capital Beltway (I-495), just a half-mile from Tysons Corner Center.
“Both of these buildings fit well into our existing Tysons portfolio,” Block said. “They are ideal for cost-conscious tenants that are priced out of office buildings [located] closer to [the] Metro.”
The 1951 Kidwell Drive building boasts prominent signage opportunities along I-495, while the 1953 Gallows Road building is adjacent to Fairfax Square, a large mixed-use complex in the area.
“Tysons was the top-performing D.C. Metro area submarket in 2019,” Block said. “We believe strongly in the future of Tysons, and we are investing accordingly.”
The seller was not disclosed. Public records note the previous owner had acquired the properties in 2016.
Eastdil Secured facilitated the deal on behalf of the seller.