October 18, 2018
Herndon, VA – Transwestern today announces it has been retained by Cambridge to sell The Atrium at Worldgate, a 130,770-square-foot, Class A office building at 205 Van Buren St., just three blocks from the future Herndon Metro Station in Herndon, Virginia. The property is 89 percent occupied with rents that are nearly 9 percent below the market rate and a weighted average lease term of 4 years and 3 months. Transwestern’s Mid-Atlantic Capital Markets Group is handling the transaction for Cambridge.
“Nearly half of the property’s leases roll over between 2020 and 2022,” said Gerry Trainor, Executive Managing Director of Transwestern’s Mid-Atlantic Capital Markets Group. “With the Herndon Metro Station opening in 2020, this transit-oriented opportunity will provide an investor with stable cash flow and future upside through the lease-up of the vacant space and rent increases when the below-market rents roll to the prevailing rates. The Herndon Metro Station is expected to induce rent growth that will rival what nearby Reston experienced with the opening of the Wiehle-Reston East Metro Station.”
According to Transwestern research, the delivery of the Silver Line’s Wiehle-Reston East Metro Station in July 2014 resulted in 23 percent rent growth in Reston from 2011 to 2016. Furthermore, rezoning in areas surrounding the property have resulted in plans for 7 million square feet of mixed-use development.
The Atrium at Worldgate has recently undergone renovations which included updating the four-story atrium lobby, the addition of a fitness center, and a full-service café with outdoor seating. As a result of the renovations, the property has experienced an increase in new leasing activity as well as renewals from its 13 tenants which include General Dynamics’ Tenacity Solutions and Nokia Networks. These high-tech tenants are representative of the Dulles Corridor tenant base, which has the highest concentration of science and technology firms in the country. Eighty-two of the top 100 federal technology contractors have a presence in Fairfax County due to its highly educated workforce.
Transwestern’s Mid-Atlantic Capital Markets Group focuses on investment services throughout the Washington, D.C., region, providing clients with exceptional service and market knowledge. During the past 24 months, the group’s transactions have exceeded $2 billion in aggregate value. The team’s success is a direct result of detailed underwriting and keen understanding of the local, national and international investment communities.
Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Asset Services, Occupier Solutions, Capital Markets and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Transwestern has 35 U.S. offices and assists clients from more than 221 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and Canada-based Devencore. Experience Extraordinary at transwestern.com and @Transwestern.