Penzance Acquires Rosslyn Gateway to Redevelop Into Mixed-Use Towers
Penzance has acquired Rosslyn Gateway, a two-building, 255,000-square-foot office property in Arlington, Va., for $52 million, and intends to renew a development plan started by the previous owner, the company said.
JBG Smith sold the 1960s vintage office buildings at 1901 and 1911 Fort Myer Drive, which they acquired in 2003 for $54.5 million when the company was known as JBG Cos.
The Arlington County Board previously approved a plan to transform the site into a three-tower, 1 million-square-foot development in 2012, which would include office, retail and residential components as well as a hotel. It’s unclear if that entitlement is still valid.
“This landmark asset will allow Penzance to deliver a best-in-class offering to area residents, furthering Rosslyn’s reputation as a world-class live-work-play urban center,” Cristopher White, managing director of investments of Penzance, said in a prepared statement. “This site truly is the gateway to Northern Virginia, and we look forward to working with Arlington County to realize the potential of this important location.”
The Washington, D.C.-based Penzance is a woman-owned firm that has more than $600 million in assets in the mid-Atlantic. Recent acquisitions include Ballston One, a 240,000-square-foot office building at 4601 North Fairfax Drive in Arlington, Va., and the 269-unit Jasper Columbia Pike, also in Arlington.
Rosslyn Gateway is also steps away from Penzance’s residential development, The Highlands, a 104-unit luxury condominium community the company redeveloped in 2021.
Penzance will also serve as the property manager for the office property, which is within walking distance of the Rosslyn Metro station and minutes from communities such as National Landing, the Rosslyn-Ballston Corridor and Tysons.
Cushman & Wakefield (CWK)’s Paul Collins, Drew Flood, Bill Collins, Eric Berkman, Shaun Weinberg, Shaun Collins and Kevin Sidney were the lone brokers on the deal.
Keith Loria can be reached at Kloria@commercialobserver.com.