Network Realty Acquires Three-Building Fairfax Office Complex
Network Realty Partners has acquired Redwood Plaza, a three-building office complex in Fairfax. Va., for $23 million.
The 207,000-square-foot complex was sold by KBS, which has owned the property since 2000.
“Our firm originally purchased Redwood Plaza 22 years ago, and the office park had been the longest-held asset in KBS’ history,” Luke Hamagiwa, KBS’ vice president and Eastern regional asset manager, told Commercial Observer. “We decided to sell the property when we received an off-market offer from a well-qualified and respected local buyer.”
Redwood Plaza I is a five-story, 99,297-square-foot building; Redwood Plaza II is a three-story, 67,328-square-foot building; and Redwood Plaza III is a two-story 40,984-square-foot building.
“These office properties are the best in this particular submarket and have been well maintained,” Greg Trimmer, a partner with Network Realty Partners, told CO. “The opportunity to acquire these assets well below replacement cost, with the added potential of a comp plan and zoning that provide for residential made it very attractive.”
Located at 10560, 10580 and 10600 Arrowhead Drive, the trio of Class A office buildings were recently renovated with the addition of a new tenant lounge, which features arcade games, shuffleboard, craft beer on tap, and a 24-hour café. The lobby, conference center and catering kitchen were also redone.
“Initially, we are going to focus on developing a plan to maximize the overall value for the site, inclusive of potential development,” Trimmer said. “Once that plan has been established, we will evaluate the specific investments in the office buildings. We have the luxury of these buildings being very high quality, so large moves in the short term aren’t necessary.”
As a suburb of Washington, DC, Fairfax is a major hub for businesses and offers excellent retail options, Hamagiwa said.
Jim Meisel, Matt Nicholson, Andrew Weir, Kevin Byrd and Dave Baker of JLL (JLL) represented the buyer in the transaction, while Newmark represented the seller.
Keith Loria can be reached at Kloria@commercialobserver.com.