Pacific Corporate Park Sold for $145.5M

Gramercy Property Trust, the New York-based global investor and asset manager, announced this week that it has sold the Pacific Corporate Park complex just a few miles north of Dulles International Airport for $145.5 million, or $209 per square foot. Terry Reiley, Robert Faktorow, Thomas Cleaver and Daniel Grimes of CBRE handled negotiations on behalf of Gramercy Property Trust, according to a CoStar report. While terms of the deal were not disclosed, Troutman Sanders LLP spokesperson told Law360 that it had represented Gramercy Property Trust in the deal.

The sale is part of the Gramercy Property Trust's previously announced plan to dispose of select single and multi-tenant office assets. Since the sale plan was announced, Gramercy has exited $646.3 million of office assets at a weighted-average cap rate of 5.7%, with another $70 million of properties are under contract and $250 million that are currently on the market the majority of which are expected to close in the first half of 2016.

Pacific Corporate Park was put on the market last December by Chambers Street Properties, close to the same time that it and Gramercy Property Trust were finalizing their merger. The New York City-based REIT acquired the 696,377-square foot property at 22110, 22260, 22265 and 22270 Pacific Boulevard in Sterling, Virginia from AOL Inc. for $144.5 million in 2010. The four-building office campus is located right next to AOL's Dulles headquarters outside of Washington, DC. Three buildings in the campus serves as the headquarters for Raytheon's Intelligence and Information Systems, which has occupied the property since 2009, and is scheduled to remain in the park until 2026; the fourth building is partially rented to Strategic Federal Credit Union.

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AOL Selling Part of VA Campus to CBRE for $144.5M

AOL Inc. has agreed to sell part of its large office complex known as Pacific Corporate Park in Northern Virginia for $144.5 million according to a Washington Post article. CB Richard Ellis will take ownership of four office buildings no longer utilized by aol and two undeveloped parcels of land on the Dulles campus. The combined total office space is approximately 700,000 rentable square feet in the four buildings; AOL vacated the building by early 2010 and the space is currently 100% leased with most of the space leased defense contractor Raytheon for a 10-year term.

"While the Dulles campus is an important part of AOL's future, we simply had no need to continue owning the additional space -- having already moved all of our talent in Dulles to one side of the campus," said Artie Minson, Executive Vice President and Chief Financial and Administrative Officer at AOL. "With a long-term lease in place it made sense for us to pursue a sale to realize maximum value of these assets and add significant cash to our balance sheet."

"We find this is an excellent location and very attractive set of resources with respect to the Northern Virginia market," said Phil Kianka, executive vice president and chief operating officer at CB Richard Ellis Realty Trust. The trust's parent company, CB Richard Ellis Group, represented AOL in the deal.

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