Monday Properties Pays $146M for Two NoVA Office Properties
Monday Properties has beefed up its Northern Virginia portfolio with two big office acquisitions totaling $145.6 million.
In one deal, the company acquired Three Ballston Plaza, a 330,000-square-foot office building in Arlington’s Rosslyn-Ballston corridor, for $118 million from AEW Capital Management.
In the second deal, Monday Properties purchased 3141 Fairview Park, a 184,000-square-foot office building in Falls Church, Va., for $27.6 million from Brandywine Realty Trust. The building is part of the 220-acre Fairview Park office park.
“These acquisitions are an important part of our strategic growth strategy as we welcome tenants back to the office and ultimately prepare for a post-pandemic world,” Jennifer Burns, executive vice president of asset management and operations, told Commercial Observer. “We know that tenants have new expectations for the office in terms of amenity offerings and technology, and we are excited to work with them as we redefine the office experience.”
With that in mind, Burns added that extensive capital improvement projects are planned at both properties, including “cutting-edge amenity packages and flexible workspaces to facilitate tenants’ abilities to convene and connect efficiently.”
Three Ballston is one of the most recognizable office buildings in Northern Virginia, offering tenants dominant frontage on Interstate 66 with almost 120,000 cars driving past the building every day, according to Burns.
“The main appeal of Three Ballston was the opportunity to revitalize such a high-profile and iconic asset,” she said. “Combine that with its unmatched location in the heart of a smart growth planning area, and we’re able to take advantage of the possibility to provide tenants the most optimal work environment.”
Monday Properties has $20 million earmarked for capital improvements at Three Ballston, partnering with Gensler, a nationally recognized architecture firm, to renovate the lobby and building entry, as well as more than 10,000 square feet of new conferencing and flexible lounge amenity spaces.
“To better connect the asset to the community, renovations are also focused on outdoor spaces and commuter flexibility,” Burns said. “Monday Properties will deliver new fitness facility offerings, such as a new cycling station, to better serve commuters and pedestrians traveling on the Custis Trail. Complemented by the proximity to more than 16 miles of walking and biking trails, the Custis Trail system connects the property to the Washington and Old Dominion Trail, numerous parks, and thriving retail.”
Drew Flood, Bill Collins and Paul Collins of Cushman & Wakefield (CWK) represented the seller. Monday Properties’ vice president of investments, Cliff Cummings, led the firm’s team on its side of the deal.
Fairview Park is situated in the Merrifield submarket of Fairfax County, close to I-66, the I-495 Beltway and Route 50. Monday Properties has $10.5 million dedicated for its capital improvement plans for 3141 Fairview.
“We have already planned a full renovation of a 5,000-square-foot indoor-outdoor amenity opportunity called the ‘HUB,’ which will provide tenants an exceptional café, catering, lounge and entertainment experience,” Burns said. “The capital repositioning plan will also deliver a new fitness and wellness center as well as conferencing and collaboration zones off the first-floor entrance and lobby as we focus on providing tenants more flexibility through enhanced indoor outdoor spaces and amenities.”
James Cassidy and Jud Ryan of Newmark (NMRK) represented the seller in that deal, while Monday Properties represented itself, with Cummings leading the deal for Monday Properties.
Requests for comments from the sellers and brokers were not immediately returned.
Keith Loria can be reached at Kloria@commercialobserver.com.