Herndon office buildings acquired near Amazon Web Services

Goodstone LLC and Waterfall Asset Management secured $49.6M to acquire and renovate the buildings.

Published January 17, 2020 by Sydney Lake

A joint venture between Washington, D.C.-based real estate company Goodstone LLC and New York City-based investment company Waterfall Asset Management secured $49.625 million in debt financing from Bridge Investment Group LLC to acquire and renovate two office buildings in Herndon adjacent to Amazon Web Services’ East Coast headquarters.

The Northridge I and II buildings, two separate but contiguous properties, are a combined 258,452 square feet. The six-story buildings are nearly identical, with each floor being roughly 22,000 square feet in rectangular layouts.

Tenants include the U.S. Small Business Administration, Spaceflight Industries Inc., Discover Technologies LLC and B3 Group Inc.

Executive Vice President Terry Reiley and Vice President Caroline Bour of Los Angeles-based real estate company CBRE will handle the leasing of the buildings.

Although an exact timeline for the project has not been determined, the companies are estimating that it will take 12 months to complete renovations once the project starts.

The acquisition loan, which was completed in late December, was structured by Bethesda, Maryland-based Phillips Realty Capital and includes funding for 100% of Goodstone’s plans to combine the properties. Currently, the properties are jointly 85% leased.

Phillips Realty Capital has Virginia offices in Alexandria, Charlottesville and Henrico County. The deal was led by principals John Sieber in Bethesda and David Foulk from the firm’s Charlottesville office.

A Cushman & Wakefield team led by Drew Flood, executive managing director, and Shaun Collins, senior associate, represented the seller of the Northridge I building. Bill Prutting, managing director, and Jim Molloy, senior vice president, with Jones Lang LaSalle represented the seller of Northridge II.