Shorenstein Buys Monroe Business Center in Northern Virginia
Shorenstein Properties has acquired Monroe Business Center, a seven-property, Class B office portfolio in Herndon, Va., from PS Business Parks.
The price was not disclosed. JLL (JLL) represented both sides in the deal.
Located at 550-600 Herndon Parkway, overall, the properties total 244,393 square feet on 93 acres, and is currently 94 percent leased to 61 tenants.
Bruce Strasburg, a JLL senior managing director, told Commercial Observer that the property appealed to the buyer, due to its proximity to the Metro and being a “single-story product in the age of COVID,” plus its redevelopment potential.
Additionally, the weighted average remaining lease term of 2.3 years offers flexibility for retaining in place cash flow while planning future redevelopment options, and while below-market, in-place rents offer upside.
Originally built in 1986, the buildings are located along the Dulles Toll Road (Route 267), across the street from the Herndon Silver Line Metro Station, and offer direct access to Washington, D.C.
“The acquisition of Monroe Business Center enables Shorenstein to expand upon its thesis of acquiring properties in high-growth, transit-oriented locations and to leverage its fully integrated platform to create value over time,” Matt Knisely, Shorenstein’s managing director, said in a prepared statement. “The portfolio offers an ideal option for companies that are seeking a cost-effective space with flexible transportation options, and we are pleased to add another quality portfolio of properties to Shorenstein’s portfolio.”
PS Business Parks acquired the property in 1999 for $5.5 million.
Joining Strasburg on the deal were JLL’s Craig Childs, Brian Crivella and Bill Prutting.