Brookfield Sells Arlington Medical Office for Slight Discount
The sale price was about $3 million less than it paid for the health center in 2021
By Nick Trombola March 18, 2025 2:15 pm
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A Brookfield Asset Management fund has sold yet another office property at a discount — but this time at least the percentage difference is in single digits.
The investment firm last month sold Arlington Medical Center, an eight-story building at 1005 North Glebe Road in Arlington, Va., to a subsidiary of Remedy Medical Properties for $47 million, according to the Business Journals, citing property records.
Paperwork for the Remedy affiliate was also signed by a representative for Los Angeles-based investment firm Kayne Anderson, meaning the L.A. firm could be a joint venture partner with Remedy for ownership of the building. Remedy used the property and several others it owns to collateralize nearly $73 million in debt from Ally Bank, per the Business Journals.
Representatives for Brookfield, Remedy and Kayne did not immediately respond to requests for comment.
Brookfield had acquired the 148,166-square-foot office, formerly known as Fairgate at Ballston, from Elme Communities in 2021 for about $50.2 million. While Brookfield sold the property at a loss, the deficit was not nearly as severe as other properties Brookfield has shed lately in both the DMV and Southern California amid a surge in office distress and a generational decline in workspace demand.
Its former office tower portfolio in Downtown Los Angeles is perhaps the sheerest example. The Gas Company Tower, Bank of America Plaza, EY Plaza, 777 Tower and Figueroa at Wilshire have succumbed to one form of distress or another in recent years, with the landmark Gas Company Tower most recently being acquired for $200 million — a far cry from the $522 million Brookfield paid for it ten years previously.
Yet it’s not all bad news for the investment firm lately. In September, Brookfield sold a 20-story property in Rosslyn, Va., an I.M. Pei-designed building dubbed Potomac Tower, to natural gas company Venture Global LNG for $143 million, or $37 million more than Brookfield paid for it in 2004.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
Update: This story has been updated to reflect the which Brookfield subsidiary sold the office property.
