Finmarc Buys NoVA Office Portfolio at Massive Discount
The $51M purchase price is less than half of what seller Rockpoint paid in 2018, records show.
By Nick Trombola January 3, 2025 12:52 pm
reprints
Finmarc Management is taking advantage of the declining office property values and has scored a massive discount in Northern Virginia.
The Bethesda, Md.-based real estate firm paid just $51 million for the 620,000-square-foot office portfolio, dubbed Dulles Corner, from an affiliate of Boston-based private equity firm Rockpoint. Yet Rockpoint paid a total of $141.5 million for the properties in late 2018, records show, indicating just how far office values have fallen since pre-pandemic days.
Eastdil Secured represented Rockpoint in the deal, which included 2411 Dulles Corner Park, 13880 Dulles Corner Lane, 2355 Dulles Corner Boulevard and 13825 Sunrise Valley Drive, located just east of Virginia State Route 28 from Dulles International Airport. The first three properties were renovated in 2022, while the Sunrise Valley Drive property was “improved” in 2005, per Finmarc.
Amenities at the complex include conference facilities, a day care center, a fitness center, a centrally located park and on-site restaurants. Tenants include Peraton, SAP National Security Services, DLT Solutions, Mission Essential, Valiant Integrated Services, Synopsys and BlackSky DC. Finmarc has contracted Cushman & Wakefield to lead future leasing efforts.
“The former owners of Dulles Corner were reluctant to invest additional capital into leasing, which translated to the limited leasing achieved over the past several years and a distressed buying opportunity, which produced a sale significantly below replacement cost,” Neil Markus, Finmarc principal, said in a statement. “We believe market fundamentals remain extremely positive, led by the portfolio’s position, the diverse range of industries in the D.C.-Northern Virginia market, and the presence of a highly skilled labor force.”
Representatives for Rockpoint did not immediately respond to a request for comment.
The deal isn’t Finmarc’s only bargain portfolio buy in NoVA lately. In August, the firm paid $39 million for Trinity Centre, a four-building, 500,000-square-foot complex less than 11 miles south of Dulles Corner. The seller, a joint venture between Spear Street Capital and Partners Group, paid $134 million for the portfolio in 2016, according to property records.
“Our recent acquisition of Trinity Centre, together with significant commercial real estate holdings in the Northern Virginia and greater Washington, D.C., market, validates our optimism about the long-term prospects of the region,” Markus added.
“We intend to remain aggressive in our pursuit of emerging institutional-quality, under-performing, and value-add assets in the coming year, backed by ready capital and a strong track record of certainty to close, which positions us a preferred and proven counterparty to sellers of real estate assets.”
Nick Trombola can be reached at ntrombola@commercialobserver.com.
