Class-A Office Building in Fredericksburg Sold Four Years After Acquisition
April 29, 2015 — Affiliates of Philadelphia-based Rubenstein Partners (such affiliates together, “Rubenstein”) have completed the sale of Lee’s Hill II, a 152,000 square foot Class A office building located at 10304 Spotsylvania Avenue in Fredericksburg, VA.
The transaction, brokered by Jones Lang LaSalle’s Mid-Atlantic Capital Markets Group, closed almost four years after Rubenstein’s initial acquisition of the property. During their time as owner, Rubenstein added a number of capital improvements and renovations to modernize the property, and eventually increased tenant occupancy from 63% to 99%.
“We have been pleased with the response to this building since we first began marketing it,” said Craig Zolot, Director of Asset Management for Rubenstein Partners. “Lees Hill II is an excellent property in a growing, strategically located D.C. submarket. In addition, the strong tenant roster combined with the upgrades that we have added over the last two years created a solid investment opportunity for the new owner. The sale is the validation of our strategy to create long-term value in this property, and our ability to execute that strategy.”
In addition to this recent sale, Rubenstein remains active in the D.C metro area and currently owns other office assets in the region, including Belvoir Corporate Center located in Springfield, VA and Maryland Trade Center III located in Prince George’s County in Maryland. “The metro Washington D.C. office sector has been facing challenges in office demand, but certain pockets of tenant demand and certain locations have been faring well; Rubenstein Partners has been focusing its efforts on these areas that are or expected to outperform the overall market and has several investments in its pipeline,” said Stephen Evans, Regional Director of the Washington, D.C. Market for Rubenstein.
The company already has a development site under option and plans to explore other strategic office asset investment opportunities in the greater Washington D.C. region over the next year and beyond, which includes the District of Columbia, suburban Maryland, and Northern Virginia markets.
James Molloy and Jason DeWitt of Jones Lang LaSalle represented Rubenstein Partners on the Lee’s Hill II transaction.
Located on an elevated 15 acre site within the Lee’s Hill Office Park, the property is situated near both I-95 and Route 1 (Jefferson Davis Highway), the primary business corridor in Fredericksburg. The Lee’s Hill II current tenant roster includes well-known organizations such as the US Army Corps of Engineers, the Commonwealth of Virginia, and Comcast, along with other notable companies such as A-T Solutions, Providence Service Corporation, and Career Training Solutions. The property offers an array of on-site and nearby amenities and dining options and includes an additional development opportunity in the existing parking lot located adjacent to Lee’s Hill II.
About Rubenstein Partners
Rubenstein Partners, L.P., founded in September 2005, is a private real estate investment management and advisory firm with operations throughout the Eastern United States. The firm is led by its founder, David Rubenstein, and a group of senior real estate executives, and is focused on directing and managing value-added office real estate investments, primarily in the Eastern United States. Rubenstein Partners’ predecessor company, The Rubenstein Company, LP and affiliates, founded in 1969, was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004. Since 2005, Rubenstein Partners has, on behalf of its investors and clients, invested in more than 10,000,000 sq. ft. of office real estate assets throughout the Eastern United States. For more information, visit www.rubensteinpartners.com.