NEW YORK CITY — A joint venture between two New York City-based investors, Turnbridge Equities and Fundamental Advisors LP, has sold its five-building Northern Virginia Cybersecurity and Defense Infrastructure office portfolio for $220 million. The buyer was undisclosed.
The joint venture began assembling the 860,000-square-foot portfolio in 2018 with the goal of mitigating rollover risk related to single-tenant occupancy by creating a multi-tenant portfolio with staggered lease terms. The properties were 96 percent occupied at the time of sale by tenants that include Lockheed Martin Corp., General Dynamics Corp., Boeing and Northrop Grumman Corp.
The portfolio includes a 205,074-square-foot property at 460 Herndon Parkway in Herndon; a 84,652-square-foot property at 14700 Lee Road in Chantilly; a 112,623-square-foot building at 21700 Atlantic Blvd. in Sterling; a 184,414-square-foot property at 12450 Fair Lakes Circle in Fairfax; and a 273,713-square-foot complex located at 10302 and 10304 Eaton Place in Fairfax.
Eric Berkman, Shaun Weinberg and Kevin Sidney of Cushman & Wakefield represented the seller in the transaction.
“Cybersecurity is among the fastest growing areas of government contracting, and the portfolio was assembled to take advantage of these trends with a strong roster of leading tenants that are immune to work-from-home trends due to the sensitive nature of what they do,” says Ryan Nelson, co-managing principal at Turnbridge Equities.
The properties are located across cybersecurity and defense markets in Northern Virginia, where approximately 10 percent of all federal contract spending and nearly 80 percent of all cyber contracts in the United States are captured, according to the joint venture.
Turnbridge Equities is a real estate investment and development firm with over $2 billion worth of assets under management across two managed funds. In addition to its New York City headquarters, the company has offices in Washington, D.C.; Los Angeles; Austin, Texas; and Miami.
Fundamental Advisors is an alternative asset manager dedicated to municipal, public-purpose and community assets. Founded in 2007, the firm is focused on investment in distressed assets, financing the development or revitalization of public and community spaces, and acquiring undervalued securities in the secondary market.