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FCP Sells Amazon Web Services' East Coast Campus in $226 Million Deal

Less Than One Year After Signing Amazon.com Subsidiary to Full Bldg. Lease at One Dulles Tower, Local Firm Flips Herndon Property for Outsized Return
March 1, 2018
Federal Capital Partners (FCP) is cashing in on the suburban Washington, D.C. office building the company successfully leased out last year to on-demand cloud computing platform provider and Amazon.com subsidiary, Amazon Web Services.

Harbor Group International, of Norfolk, VA, paid $226 million, or nearly $560 per square foot, to FCP for One Dulles Tower, a 13-story, 403,622-square-foot office building located along the Dulles Toll Rd. in Herndon, VA.

Back in June, Governor Terry McAuliffe confirmed Virginia had been selected for the site of Amazon Web Services' new corporate campus, beating out finalists Texas and Washington. The Virginia Economic Development Partnership collaborated with the General Assembly's Major Employment and Investment (MEI) Commission to secure the deal for the state, which could potentially create up to 1,500 jobs in Fairfax County.

For FCP, the sale brings the property full circle after the privately held real estate investment company out of Bethesda, MD paid $84 million for the building back in late 2015.

In October of that year, FCP struck a deal with Corporate Office Properties Trust to acquire the Class A building, which since 2004 had been fully leased to Tysons Corner, VA-based management consulting firm, Booz Allen Hamilton. Following Booz Allen's lease expiration and move-out on December 31, 2015, FCP repositioned and remarketed the asset before signing Amazon Web Services to a 400,000-square-foot deal in one of the largest office leases signed in 2017 in the Washington, D.C. market.

“FCP is thrilled with the exceptional results of the repositioning of this trophy Dulles Corridor tower," said Erik Weinberg, senior vice president with FCP. "One Dulles is an excellent example of the type of commercial office property in which we like to invest and, with fund capital available to us, we will continue to seek opportunities like this one in the Dulles Corridor and other strong submarkets throughout the Washington, DC region and the East Coast."

Tishman Speyer developed One Dulles Tower in 2002 at 13200 Woodland Park Rd. within the Woodland Park development. The building sits two miles east of Dulles International Airport, and within a half-mile of the future Herndon and Innovation Center Silver Line metro stations.

Harbor Group International secured $152 million in financing for the acquisition. Shawn Rosenthal and Sunny Somaiya of CBRE Capital Markets' debt and structured finance team in Midtown Manhattan arranged the 10-year, interest only fixed-rate CMBS loan through Wells Fargo.

Bill Collins, Paul Collins, Drew Flood, Eric Berkman and Shaun Weinberg of Cushman & Wakefield negotiated the sale for FCP.

For more information on the transaction, please see CoStar Comp #4151242.
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