Department of Defense Signs 45K-SF Lease in Alexandria
By Keith Loria January 11, 2024 11:43 am
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The U.S. General Services Administration has inked a 15-year, 45,843-square-foot lease at 4825 Mark Center Drive in Alexandria, Va., which will be used by the U.S. Department of Defense (DOD).
The 220,000-square-foot building is owned by PRP, which acquired the property for $40 million in 2018 as part of a two-building portfolio following a loan default from previous owner Duke Realty.
The building, which was developed in 2000, was 100 percent vacant at the time PRP acquired it, and occupancy is now at 60 percent with six leases signed in the past two years, per the landlord.
“What attracts tenants is its location, virtually column-free floor plates, being adjacent to the second-largest GSA property housing the Army’s procurement facility, light and air on all sides, dark fiber and an abundance of power,” Paul Dougherty, president of PRP, told Commercial Observer.
The Department of Defense is relocating from Skyline Tower at 5109 Leesburg Pike in Falls Church.
Other tenants at DOD’s new building include cardiovascular care company Virginia Heart, government solutions company ASIX, and dental implant center Nuvia, which signed a 4,580-square-foot lease last year.
Over the past few years, PRP has made base building renovations, replaced elevators and HVAC equipment and improved the lobby. The eight-story building features 10-foot finished ceiling heights and expansive 27,000-square-foot floor plates.
PRP expects to complete the lease-up of the building in 2024, Dougherty said. “We are in active negotiations with medical office and retail tenants whose presence will help transform and reinvigorate this submarket of Alexandria.”
The building is within the Mark Center submarket, along Interstate 395, just 10 minutes from Amazon’s HQ2. It is close to the Mark Center Hilton and Conference Center, Alexandria Hospital and Alexandria Community College. It’s also across the street from the Mark Center Transit Center, providing regional and local bus service as well free shuttle service to two nearby Metrorail stations.
DOD and GSA officials have not said how the new space will be used.
Scott Johnson of Cushman and Wakefield represented PRP in the lease. It was unclear who handled things on the tenant side.
Keith Loria can be reached at Kloria@commercialobserver.com.
