October 13, 2021 11:19 AM
Newmark announces the sale of 12601 Fair Lakes Circle (known as the CGI Building) in Fairfax, VA. The 259,511-square-foot asset was sold from a global real estate investment advisor to Opal Holdings. Newmark’s Executive Managing Directors James Cassidy and Jud Ryan represented the seller on the transaction.
12601 Fair Lakes Circle is a 10-story, newly renovated office tower that is 88% leased to four tenants on 8.36 acres. The tenant base is primarily federal government contractors anchored by the building’s namesake CGI Federal. The property’s recent $6.4 million capital improvement plan included a new contemporary lobby, elevator modernization, a sprawling outdoor lounge area with ample table and bar seating, and an innovative fitness center. Other on-site amenities include a first-floor café and two detached parking garages along with a surface lot.
“Multifamily and industrial may currently be the most favored asset classes nationally, but the positive storylines for office in Northern Virginia are too powerful to ignore, particularly when an asset of 12601 Fair Lakes’ quality becomes available for sale,” said Ryan. “This sale represents our 35th transaction in Northern Virginia in the past two and a half years, and the 12601 Fair Lakes execution further highlights the bullishness on this market.”
According to Newmark Research, Northern Virginia has been successful at attracting companies to relocate to the area by leveraging financial incentives and committing to infrastructure improvements over the past ten years. Fairfax County alone has 11 Fortune 500 headquarters, which is more than 35 states and the District. This will be an advantage during the ongoing economic recovery from COVID-19, and asset owners and tenants alike have reason to expect a market rebound in the years ahead.
12601 Fair Lakes Circle is directly adjacent to East Market at Fair Lakes, with quick access to Whole Foods and Starbucks. The 1.5-mile trade area impressively boasts over five million square feet of retail space, including The Shops at Fair Lakes, Fair Lakes Center, Fair Lakes Promenade, and Fairfax Towne Center. The property is located along Fairfax-66, one of Virginia’s primary transportation routes into Washington, DC. The new interchanges at Route 28 and Monument Drive will drastically enhance accessibility to 12601 Fair Lakes Circle Corner and Fair Oaks Mall. This prime location offers regional connectivity via I-66, Fairfax County Parkway (Route 286), and Route 50 with accessibility to the Capital Beltway (I-495 /I-95), Washington Dulles Airport and downtown DC.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
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