Two buildings in coveted location sell for nearly $13 million, signaling a growing demand for well-leased suburban office properties with multiple healthcare tenants

WASHINGTON, DC – Avison Young’s Capital Markets Group announced today that it has brokered the sale of two premier office buildings ideally located in Kingstowne, a vibrant live-work-play community in Northern Virginia.

Melrose Solomon Enterprises purchased the buildings at 5901 Kingstowne Village Parkway and 5695 King Centre Drive from The Halle Companies for $12.875 million.

Representing the seller was an Avison Young Capital Markets team led by Chip Ryan, Principal; and Matt Weber, Senior Vice President. Jon Goldstein, Wes Boatwright and Mike Yavinsky, all Principals at Avison Young, arranged the financing on behalf of Melrose Solomon.

“These properties represented an excellent opportunity to acquire two exceptional office buildings in a highly desirable location,” Ryan said. “The portfolio drew significant interest from investors across the country who are seeking well-leased suburban office buildings, especially those with healthcare tenants in a growing area.”

Added Goldstein: “The combination of the quality of the assets, excellent location, diverse rent roll and strong in-place cash flow all resulted in exceptional debt terms. It was a pleasure working with Melrose Solomon again.” 

The properties are a combined 93 percent leased to a variety of medical office, government contractors and traditional tenants.

The larger of the two properties, 5695 Kings Centre Drive is a three-story office building constructed in 2002. Its location on the eastern edge of Kingstowne provides easy access to South Van Dorn Street, an important local artery for commuters. The building has 44,262 square feet (SF) of net rentable space.

Located on the northern boundary of the Kingstowne Towne Center, 5901 Kingstowne Village Parkway conveniently located near popular retail offerings such as Giant, Starbucks and Chick-Fil-A. The property features attractive 8,000-SF floorplans and has 22,117 SF of net rentable space.

Both are ideally situated in Kingstowne, a thriving community that continues to grow in size and popularity. After nearly 650 new multifamily units are completed in the nearby Kingstowne Towne Center, the local economy will be boosted by yet another influx of young, affluent residents. The buildings also benefit from their proximity to the Transportation Security Administration, the National Geospatial Intelligence Agency, Fort Belvoir and Amazon’s HQ2.

The Halle Companies developed Kingstowne in the mid-1980’s, converting 1,200 acres into Northern Virginia’s second largest master-planned community. Kingstowne’s core is a centralized, walkable town center with more than 1 million SF of top-tier retailers and high-quality office buildings. With large expanses of green space, Kingstowne is considered one of Northern Virginia’s most desirable places to live and work.  

“Thanks to a lower cost of living, a highly educated workforce and a unique sense of place, Kingstowne is primed for continued growth and opportunities,” said Larry Solomon of Melrose Solomon Enterprises. “The future is exceptionally bright here.”