NoVA Office Building Sold to Abramson Properties for $13M, Will Become Condos
Abramson Properties has acquired 801 North Fairfax Street, a 65,971-square-foot office building in Alexandria, Va., from Finmarc Management for $13.12 million.
The buyer plans to convert the vacant four-story office building into a 54-unit condominium complex.
“The small floor plates, narrow depth with lots of window exposure, and available underground parking, combined with a compelling location one block from the water with good views, are conducive for conversion into condominium product,” Neil Markus, a principal at Finmarc Management, told Commercial Observer. “A number of buildings have been converted into residential uses over the past several years to take advantage of continued high demand for this product type.”
Additionally, the buyer’s decision aims to leverage the transformation of Alexandria’s North Old Town into a mixed-use neighborhood that includes numerous shopping, restaurant and entertainment amenities, such as the MetroStage theater, waterfront public parks and essential retail.
“The building’s location adjacent to the Alexandria waterfront and within 10 minutes to downtown Washington, D.C., and National Harbor, as well as points throughout Northern Virginia, were significant factors driving interest,” Markus said.
Also known as Waterfront I, the property was constructed in 1971, and is one-half of a two-building office portfolio overlooking the Potomac River.
“During our nearly seven-year hold period of Waterfront I, we were able to maximize value in this asset and believe the planned residential use represents an excellent strategy moving forward based on the evolution of North Old Town,” Sean Sullivan, Finmarc’s vice president, said. “We continue to evaluate our portfolio for favorable disposition opportunities to fund future acquisitions, with a goal of acquiring more than $200 million worth of assets in 2021.” (Abramson did not respond to a request for comment.)
The five-story Waterfront II offers 90,000 square feet of office space. Finmarc acquired both buildings from Gates Hudson in 2014.
Cushman & Wakefield Executive Managing Director Paul Norman and Managing Director John Pellerito represented both sides of the transaction. Joseph Hoffman and Heather Purdy of Kelley Drye & Warren provided legal services on behalf of Finmarc.