Meridian Group Picks Up Plaza East Office Complex in NoVA’s Cyber Intelligent Hub
The Meridian Group has acquired Plaza East, a two-building, approximately 247,000-square-foot office complex in the Washington, D.C., suburb of Chantilly, Va.
JLL represented the seller, a joint venture between affiliates of Rockpoint Group and MRP Realty. The price was not disclosed, but public records show it last sold for $30.6 million in 2010. JLL also helped the buyer secure acquisition financing.
“This was a newly built asset, attractive basis, solid submarket with supply-and-demand dynamics in our favor, well leased, and good cash flow mitigating any near-term office demand risk and potential land play,” Gary Block, partner and chief investment officer of The Meridian Group, told Commercial Observer.
He added that the positive job growth in the submarket, along with supply constraints, and with positive placemaking and retail amenities in a live, work, shop, dine and play location made this a perfect addition to the company’s portfolio.
Originally developed in 2007, Plaza East is currently fully leased to seven tenants with approximately nine years of weighted average lease term. The largest tenant in the complex is Perspecta Inc., a government services company.
Located at 14291 and 14295 Park Meadow Drive, the complex is situated in the heart of the cyber-intelligence hub of the Westfields submarket, and offers immediate proximity to the National Reconnaissance Office, the Federal Bureau of Investigation‘s (FBI) Cyber Division, and the Central Intelligence Agency (CIA).
“The thesis for Plaza East is tied to the ever-increasing funding for cybersecurity spend via the DoD,” a spokesperson at JLL told CO. “The NRO and other defense agencies focusing on cybersecurity are all located out here and are driving government contractor leasing due to all the spend.”
The JLL team representing the seller was led by Matt Nicholson, Jim Meisel, Andrew Weir and Dave Baker. Financing efforts for the buyer were led by the firm’s Paul Spellman and Dan McIntyre.