The Meridian Group acquires Tysons Metro Center

Published February 26, 2017 by Paula C. Squires

The Meridian Group has acquired Tysons Metro Center, a four-building Class A office portfolio near one of its existing properties at Tysons. Meridian purchased the 763,965-square-foot portfolio for $227 million from an affiliate of Beacon Capital Partners, according to Holliday Fenoglio Fowler (HFF), which represented the seller.

The recently renovated complex is adjacent to two properties already owned by Meridian, a Bethesda, Md.-based firm. The other Meridian properties are: Greensboro Station, a three-building, Class A office complex totaling about 640,000 square feet and The Boro, Meridian's redevelopment of the former SAIC campus into a 3.7 million-square-foot development that plans to offer a mix of retail, offices, apartments and condominiums.

“We are delighted to add Tysons Metro Center to our Tysons portfolio, which will now be approximately 2 million square feet on Greensboro Drive near the new Greensboro Metro station,” David Cheek, president of The Meridian Group, said in a statement.  “We are working on a master plan that integrates Tysons Metro Center, Greensboro Station, and the mixed-use Boro development into an amenity-rich urban center with easy access between the sites and the Greensboro Metro station.”

Gary Block, chief investment officer of Meridian, said the acquisition makes sense.  “With its scale and adjacent location, Tysons Metro Center is a strategic acquisition for us. It will create real synergy between these properties, and everyone will benefit from this new vibrant community.”

The previous owner recently completed $26.9 million in capital improvements at the center. According to Meridian, it is leased to 40 tenants, with the portfolio anchored by Booz Allen Hamilton and Alarm.com.
“Tysons Metro center is an excellence income-oriented investment for us at 91 percent leased, with value-add potential as we lease the vacant space,” said Andrew Pence, vice president of The Meridian Group, who led the transaction for the firm.

The HFF investment sales team was led by Jim Meisel, Dek Potts, Andrew Weir, Stephen Conley and Matt Nicholson. HFF, based in Washington, D.C., said it closed the sale and arranged $175 million in financing for Tysons Metro Center, working on behalf of The Meridian Group to secure the floating rate acquisition loan through Starwood Property Trust Inc.

The portfolio is comprised of these four buildings:
• Tysons Metro Center I at 8251 Greensboro Drive. Built in 1984, the 12-story building was renovated in 2012. The 168,006-square-foot building has a landscaped rooftop terrace with outdoor seating, a fitness center, an on-site deli and a bicycle locker room.
• Tysons Metro Center II at 8255 Greensboro Drive. Constructed in 2002, the 129,916-square-foot building was renovated in 2015. The six-story building features an exterior patio as well as a lounge and gaming center that offers collaborative workspace and a place for catered events.
• Tysons Metro Center III at 8281 Greensboro Drive. This 12-story building was constructed in 1980, then renovated in 2014 with $18.1 million in improvements. The building has 257,824 square feet of rentable space along with a conference center, a 2,800-square-foot café, and locker rooms with showers.
• Tysons Metro Center IV at 8285 Greensboro Drive.  Constructed in 1999 and later renovated, the 13-story building features 208,219 square feet of rentable space.
Tysons Metro Center is a short walk from the Greensboro Metro station. It’s also close to twomalls — Tysons Galleria and Tysons Corner Center.

This is the sixth transaction by Meridian’s second fund — Meridian Realty Partners II, L.P., a $231.6 million discretionary fund focusing on DC area real estate.
“We plan to acquire assets totaling approximately $1.5 billion with this fund, using leverage and additional co-investment capital,” Block said in a statement.  “With this acquisition, we have now purchased properties totaling over $628 million in value.”