KBS Sells 207,000-SF, Three-Building Class A Office Park in Fairfax, Virginia for $23M

June 29, 2022 at 16:51 PM EDT

Firm trades property after 22 years of stable revenue generation to capitalize on the region’s favorable office market fundamentals

KBS, one of the largest investors in commercial real estate, announces the disposition of Redwood Plaza I, II & III, a three-building Class A office complex spanning 207,000 square feet in Fairfax, Virginia, a submarket of Washington, D.C. The property, originally acquired by KBS in 2000, was purchased by Network Realty Partners, an Arlington, Virginia-based investor, for $23 million.

“Based on Fairfax, Virginia’s robust office market fundamentals and the increasing demand for premier office space, now is the ideal time to sell this asset,” says Marc DeLuca, CEO and Eastern regional president at KBS. “Office employees in this market are looking for spaces of the highest quality, especially as they return to in-person work. According to CBRE, since 2018, starting rents among five major central business districts including Washington, D.C. have increased by 13% in prime office buildings making this market attractive to buyers.”

The asset’s location is ideal for commuters across the D.C.-Maryland-Virginia (“DMV”) area, according to Luke Hamagiwa, asset manager for Redwood Plaza and vice president at KBS.

“Redwood Plaza has been in KBS’ client portfolio since 2000 and has generated a steady stream of revenue ever since,” says Hamagiwa. “The buyer was attracted to the property’s easy access to Washington, D.C. and major airports as well as its proximity to shopping and dining options in the Fairfax market.”

Redwood Plaza consists of three Class A office buildings: Redwood Plaza I, a five-story building that holds 99,297 total rentable square feet of space; Redwood Plaza II, a three-story building that offers 67,328 total rentable square feet; and Redwood Plaza III, a two-story building containing 40,984 rentable square feet. The three buildings have recently been renovated, bringing an elevated experience to the Redwood Plaza complex. Employees now have access to a new tenant lounge, which features arcade games, shuffleboard, free Wi-Fi, craft beer on tap, and a 24-hour, on-demand café. Additional shared amenities for tenants include renovated lobbies, a conference center, catering kitchen, and community pantry and coffee.

Jim Meisel, Matt Nicholson, Andrew Weir, Kevin Byrd and Dave Baker of JLL were the brokers of the transaction.

“KBS has a long history of operating the properties in its client portfolio to exceptional standards, and Redwood Plaza is a perfect example,” says Meisel. “The company’s ability to provide the best office space in the market is one of the reasons why assets like Redwood Plaza are so desirable for potential buyers.”

“We were pleased to work with KBS in the disposition of Redwood Plaza in one of the Mid-Atlantic’s strongest office markets,” said Bruce Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team (Shareholder, Howard Chu, and Paralegal, Amanda Kennedy) representing KBS.

Redwood Plaza is located at 10560, 10580, and 10600 Arrowhead Drive in Fairfax, Virginia.

For high res photos of the property, please visit: Redwood Plaza.

About KBS

KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $44.5 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates prime commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships, and its constant focus on exceeding the expectations of its investors, partners, and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS’s ability to invest in and manage a diverse portfolio, and the performance of Redwood Plaza and of the Fairfax, Virginia real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause Redwood Plaza’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220629005955/en/

Contacts

Media Contacts:

Lexi Astfalk or Jenn Quader

The Smart Agency

949-438-6262

KBS@thesmartagency.com

Ginny Walker

KBS Public Relations Director

949-417-6535

gwalker@kbs.com

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KBS Sells 207,000-SF, Three-Building Class A Office Park in Fairfax, Virginia for $23M

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