WASHINGTON, DC INVESTMENT SALES ACTIVITY - 2018
The 27 investment sale transactions in the downtown Washington, DC market in 2018 totaled $3.98 billion, a 13.4% decrease from the total transaction volume in 2017.
NORTHERN VIRGINIA INVESTMENT SALES ACTIVITY - 2018
The Northern Virginia investment sales market remained steady in 2018 with 50 transactions (over $10 million) totaling nearly $3.0 billion, which is comparable to the $2.99 billions of volume in 2017.
- There were six (6) ‘core’ transactions and the capitalization rate for these averaged 6.48% - a significant premium to ‘core’ asset yields in the downtown Washington, DC market;
- ‘Core plus’ sale transactions comprised nearly 50% of the gross dollar value
- The Reston-Herndon submarkets had significant gross dollar volume with $1.06 billion in total sales in 13 deals:
- Two (2) transactions comprised 50% of that volume with Rockpoint Group’s recapitalization of Brandywine Realty Trust’s Dulles Corner portfolio ($312 million) and Harbor Group’s purchase of 13200 Woodland Park Road ($226 million);
- The next highest grossing submarket in terms of dollar value was the Rosslyn-Ballston submarket with five (5) transactions totaling $550 million:
- The second largest transaction in Northern Virginia was Arlington Tower (398,000 square feet), which sold in January 2018 for $250 million to Washington REIT;
- Tysons continued to perform strongly with seven (7) transactions totaling $476 million (an average price per square foot of $272);
- Although the Route 28 Corridor (with nearly 370,000 sf of positive net absorption) also had seven (7) sales, the total transaction volume for that submarket was only $237 million (with an average price per square foot of $203).'
Please view the full report, 2018 Washington, DC and Northern Virginia Office Investment Sales Report.