Tysons Technology Center sells for $96 million
The Meridian Group has closed on the sale of Tysons Technology Center, a data center and office complex in Vienna.
According to Meridian, the 280,000-square-foot campus sold for $96 million to a joint venture involving an affiliate of Central Colo, a national data center operator, and Legacy Investing LLC, a Northern Virginia-based real estate investment company.
Tysons Technology Center is adjacent to the Capital Beltway. It is a short drive to Tysons Corner Metro Station and has access to the Capital Beltway, I-66, the Dulles Toll Road and Route 7.
The center includes a 199,560-square-foot office and data center building and a 79,890-square-foot office building. Anchored by Leidos and GSA, the complex is 91 percent leased to a diverse mix of tenants.
Meridian purchased the complex from SAIC for $63 million in 2011 and said it has invested more than $11 million in improvements since. They included renovations to the lobbies and comprehensive upgrades to the data infrastructure, including new chillers.
Meridian also rezoned the property to allow for a lighted athletic field with synthetic turf and a sound wall to reduce noise from the Beltway. The park, slated to be completed in 2018, will be available to the public and managed by the Fairfax County Park Authority.
“This transaction fit our investment strategy of acquiring underperforming assets and unlocking additional value,” Dave Gelfond, Meridian’s senior vice president said in a statement. “It was a repositioning opportunity where we converted substandard office space to data space and increased leasing from 63 percent at acquisition to 91 percent at sale.”
Eric Berkman and Bill Collins at Cushman & Wakefield, and Jeff Zell and Louis Kluger at JM Zell Partners, represented
Meridian, a real estate investment and development firm based in Bethesda, Md., in the transaction.