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Meridian Group Finalizes $227 Million Acquisition of Tysons Metro Center

Local Firm Acquires 764,000-SF Portfolio on Behalf of $231.6 Million Discretionary Fund; Will Integrate Tysons Metro Center, Greensboro Station and The Boro Development
February 24, 2017
Meridian Group has finalized a deal with Beacon Capital Partners to acquire the Tysons Metro Center, a four-building, 763,965-square-foot office park in Northern Virginia, for $227 million, or approximately $297 per square foot.

Tysons Metro Center consists of the 12-story, 168,006-square-foot Tysons Metro Center I completed in 1984 at 8251 Greensboro Dr.; the six-story, 129,916-square-foot Tysons Metro Center II completed in 2002 at 8255 Greensboro Dr.; the 12-story, 257,824-square-foot Tysons Metro Center III completed in 1980 at 8281 Greensboro Dr.; and the 13-story, 208,219-square-foot Tysons Metro Center IV completed in 1999 at 8285 Greensboro Dr.

Located next to two of Meridian's other properties, the 640,000-square-foot, three-building Greensboro Station office complex and the 3.7 million-square-foot The Boro development, the campus is 91% leased to 40 tenants including anchors Booz Allen Hamilton and Alarm.com.

Tysons Metro Center puts tenants within walking distance of the Greensboro Metro station as well as the Tysons Galleria and Tysons Corner Center shopping malls. The center, which underwent $26.9 million in renovations while under Beacon Capital Partners' ownership, also offers tenants an array of shared amenities including a tenant-only sports court, equipped for basketball, short court tennis, volleyball and a variety of other games, as well as a turf area with round tables.

“We are delighted to add Tysons Metro Center to our Tysons portfolio, which will now be approximately 2 million square feet on Greensboro Drive near the new Greensboro Metro station,” said David Cheek, president of The Meridian Group. “We are working on a master plan that integrates Tysons Metro Center, Greensboro Station, and the mixed-use Boro development into an amenity-rich urban center with easy access between the sites and the Greensboro Metro station.”

A real estate investment and development firm headquartered in Bethesda, MD, Meridian Group acquired the portfolio on behalf of Meridian Realty Partners II, a $231.6 million discretionary fund that targets D.C.-area real estate. The acquisition registers as the largest investment for the fund to date.

The purchase comes less than three weeks after Meridian II's acquisition of 1901 L St. NW and marks the discretionary fund's sixth investment overall. So far, Meridian Realty Partners II has invested $400 million including the acquisition of 1400 L St. in downtown Washington, D.C., the International Place building in Rosslyn, VA; 11111 Sunset Hills Rd. in Reston, VA; and the 390-room Hyatt Regency Bethesda in Bethesda, MD.

“We plan to acquire assets totaling approximately $1.5 billion with this fund, using leverage and additional co-investment capital,” said Gary Block, CIO of Meridian. “With this acquisition, we have now purchased properties totaling over $628 million in value.”

Meridian secured a $175 million floating-rate loan through Starwood Property Trust to finance the acquisition of Tysons Metro Center.

Jim Meisel, Dek Potts, Andrew Weir, Stephen Conley and Matt Nicholson of HFF's investment sales team handled the disposition for Beacon Capital Partners, while Fred Klein, Keith Greenberg, Primo Fontana and Christina Houston of DLA Piper represented The Meridian Group. Sue Carras, Cary Abod, Dan McIntyre and Rob Carey of HFF's debt placement team placed the financing on behalf of Meridian.

For more information on the transaction, please see CoStar Comp #3841027.
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