National Office Partners LP, a joint venture of Hines and the California Public Employees' Retirement System (CalPERS), sold Station Square, a 496,967-square-foot office park in Silver Spring, MD, last week to a joint venture led by Moore & Associates, the park’s developer, and Urdang Value-Added Fund II LP. The three-building property traded for $74.7 million, or approximately $150 per square foot.
Moore & Associates originally sold the Class A complex to National Office Partners in December 2005 for $129.8 million, or about $256 per square foot, because of low cap rates.
“Today, capitalization rates are much higher and Silver Spring remains a strong office market in a balanced urban center,” said Lloyd W. Moore, chairman of Moore & Associates.
The portfolio is about 8 miles outside of Washington, DC, and one block from Discovery Communications’ 600,000-square-foot headquarters and the Silver Spring Metro station.
Station Square’s 10-story building at 8484 Georgia Ave. delivered in 1983 and the 14- and 12-story structures at 1010 and 1100 Wayne Ave. delivered in 1987. The assets are between 139,900 and 196,660 square feet and 75.6 and 84 percent leased. Current tenants include MayaTech Corp., the National Oceanic and Atmostpheric Administration, TV One LLC, Palladian and TEKsystems Inc.
This is the partnership’s fourth purchase. A multimillion-dollar renovation of the park will commence immediately and Moore & Associates will take the lead on property management, leasing and construction.
Bill Prutting Jr., Bill Kaye and Randall Heilig of CB Richard Ellis’ Investment Properties Group represented Hines and CalPERS. No outside brokers were mentioned for the acquisition group.
Source: Laurie Forbes (2010). Hines, CalPERS Sold 500,000-SF Office Park for $75M. Costar Published Jan 08, 2010 Viewed Jan 11, 2010, http://www.costar.com/News/Article.aspx?id=883C6326BFC1F62891D7CD31A52A1F75
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