4401 Fair Lakes Court, Fairfax, VA
Product: 60,000 sf midrise suburban office
Client: Mohasco Corporation affiliate
Challenges
- Single-occupant building with 20%+ core factor and one elevator
- Submarket vacancy 28%; rapid decline in rents and sale prices (50% of replacement cost)
- Client did not want to alarm employees by advertising a sale; no signs allowed
Solutions
- Persuaded client to lease up most of the building to boost the sale price
- Structured leases with high face rent and initial free rent to boost return to eventual buyer
- Calculated square footage using 15% core factor
- Began sale marketing at 75% occupancy; sold to an occupier at 15% above market price
- Negotiated buyer’s retention of seller’s facility personnel