Innovatus Capital Buys Dulles Executive Plaza in NoVA for $114M
Innovatus Capital Partners has acquired Dulles Executive Plaza, a two-building, Class A office complex in Herndon, Va., from a joint venture between Lionstone Investments and funds advised by Columbia Real Estate Management for $113.5 million.
JLL represented the seller in the transaction and also secured acquisition financing for the buyer.
Located at 13530 and 13560 Dulles Technology Drive in Herndon’s Innovation Center, the 384,336-square-foot Dulles Executive Plaza features such amenities as a conference center, fitness facility and tenant lounge.
The property underwent a $4.7 million renovation in 2019.
“There was solid institutional interest in the offering, and the Northern Virginia market continues to resonate with investors as things move back to a largely in-person office environment,” a JLL spokesperson told Commercial Observer.
Furthermore, the submarket is fast becoming a transit-oriented, mixed-use environment, thanks to the planned opening of the Innovation Center Silver Line Metro Rail Station later this year, which will link the property to the broader D.C. region and continue to spur additional development.
Additionally, existing rents are significantly below market by about 10 percent, which offers investors embedded mark-to-market upside and certainty of renewal in the future, according to JLL.
At the time of the sale, the property was 94 percent leased to government contractors, including Lockheed Martin and Constellis.
The JLL team representing the seller was led by Matt Nicholson, Jim Meisel, Andrew Weir and Dave Baker. The firm’s Paul Spellman, Rob Carey and Susan Carras were on the financing side of the deal.