Harbor Group Buys Amazon-Anchored Office Tower in Northern Virginia from FCP for $226M
HERNDON, VA. — Harbor Group International LLC (HGI) has purchased One Dulles Tower, a 13-story office building located in Herndon, a northern Virginia suburb roughly 24 miles west of Washington, D.C. Federal Capital Partners (FCP) sold the 403,622-square-foot asset to HGI for $226 million.
Following the departure of its anchor tenant, FCP landed another company in early 2017, Amazon Web Services (AWS). The cloud-computing services provider is the sole occupant of One Dulles Tower, according to FCP.
“This is a Class A property with a top-tier tenant in an irreplaceable location in the Dulles Technology Corridor,” says Richard Litton Jr., president of HGI.
Last summer, former Virginia Gov. Terry McAuliffe announced that the Amazon.com (NASDAQ: AMZN) subsidiary chose the office tower for its East Coast corporate hub, a move that could ultimately bring up to 1,500 jobs to the Fairfax County area.
One Dulles Tower is located within the Woodland Park master-planned development, giving AWS staffers convenient access to more than 140,000 square feet of retail and restaurants. Other walkable attractions include a hotel and five-acre park.
The property is also situated within a half-mile of both the future Herndon and Innovation Center Silver Line Metro stations, as well as 4.5 miles east of Washington Dulles International Airport.
FCP originally purchased One Dulles Tower in 2015 from Corporate Office Properties Trust for $84 million, shortly before anchor tenant Booz Allen Hamilton Inc.’s (NYSE: BAH) planned departure that December.
FCP completed an $11 million renovation last year that included the addition of a new lobby and security entrance, full upgrade to the parking garage, modernization of the elevators, upgrades to the restrooms and added amenities, including a fitness center and conference center.
“FCP is thrilled with the exceptional results of the repositioning of this trophy Dulles Corridor tower,” says Erik Weinberg, senior vice president of FCP.
Bill Collins, Paul Collins, Drew Flood, Eric Berkman and Shaun Weinberg of Cushman & Wakefield represented FCP in the sale.
Harbor Group International is a privately held real estate investment and management firm based in Norfolk, Va., with regional offices in New York, Baltimore and Tel Aviv. The company’s $7.4 billion portfolio includes 4.8 million square feet of commercial properties and approximately 30,000 apartment units.
Based in Chevy Chase, Md., Federal Capital Partners is a privately held real estate investment company that has invested in or financed more than $6 billion in assets since its founding in 1999. FCP invests directly and with operating partners in commercial and residential assets.
— John Nelson