Sterling, Virginia Office Flex Building Commands $15M
February 3, 2020 | Keith Loria, Commercial Observer
Klein Enterprises has acquired 45745 Nokes Boulevard, a 95,282-square-foot Class A office flex building in Sterling, Va., for $15.4 million, according to Avison Young, which represented the seller in the transaction.
Avison Young did not disclose the name of the seller, but public records show that it was previously owned by Lerner Enterprises, which developed the building in 2001.
“The buyer has been very successful with their single-story office and flex strategy and is very nimble and experienced in the market and quickly expanding their portfolio in Northern Virginia,” Michael Murillo, a vice president at Avison Young, told Commercial Observer. “There are multiple options to cash flow and value—it’s a premiere property amongst its peer set, falling vacancy rates, increasing leasing absorption, and rising land values with the continued growth of the data center sector.”
The building is situated within The Corporate Office Park at Dulles Town Center, a 554-acre mixed-use development with dining, retail and entertainment options nearby. It’s close by Washington Dulles International Airport and the future home of a Silver Line Metro station.
“We’ve made a strategic decision to expand into Virginia over the past 3-4 years by acquiring high-quality assets in attractive submarkets and this deal is an example of that,” Daniel Klein, Klein Enterprises’ president, told CO. “It’s in an excellent location, has high-quality construction from a reputable seller and it was in excellent condition.”
According to Murillo, there are few opportunities to buy flex/office assets of this quality in today’s market, adding to the appeal of the acquisition for the buyer. The 45745 Nokes Boulevard building is also part of Sterling’s burgeoning data center alley, providing access to a robust fiber and power network.
At the time of the deal, the property was 85 percent leased. Tenants include Eagle Bank, Inova Healthcare Systems, Raytheon and Barakat Orthodontics.
Joining Murillo on the Avison Young team were John Kevill, principal and managing director for U.S. capital markets; Principals Michael Yavinsky, Rob Walters and Bert Harrell; and senior vice president Matt Weber. Klein Enterprises represented itself in the deal.