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Meridian buys five Chantilly office buildings for about $67M
The five-property portfolio totals 431,000 square feet in the Westfields Center office park near Route 28.
Northern Virginia office investor The Meridian Group, partnered with Harrison Street Asset Management and HLM Associates, has purchased five office buildings in Chantilly, according to Bisnow. The acquired properties are at 4800 and 4840 Westfields Blvd., and 14150, 14151, and 14155 Newbrook Drive, totaling 431,000 square feet within the Westfields Center office park just off Route 28.
Bisnow reports the deal price was not disclosed in public disclosures yet and has not appeared in property records, but a source familiar with the transaction put the sale price at around $67 million. Deed records indicate the prior owner was an affiliate of The RMR Group, a Massachusetts-based asset manager that lists the properties on its website.
The Meridian Group said the purchase is designed to launch a new strategy focused on mission-critical facilities for the U.S. defense and intelligence sectors, as Gary Block, the company’s chief investment officer, said the acquisition is an opening play for its platform. Bisnow notes Northern Virginia has long been a defense hub, with the CIA buying a nearby office building last year for $247 million, according to the Washington Business Journal.
Brokers involved in the sale characterized the transaction as a notable moment for the Chantilly submarket. Newmark Executive Managing Director James Cassidy said the area has strong defense-sector demand but limited office investment sales volume, calling the deal a “watershed transaction” and adding that much of what had traded previously was distressed.