Harrison Street Asset Management and the Meridian Group have acquired a five-building office portfolio in Chantilly, Virginia. This move is part of a strategic alignment to attract tenants from the national security, defence, and intelligence sectors. The joint venture, which also involves HLM Associates, included the acquisition of the Stoneleigh and Newbrook properties, totalling 431,000 square feet and located within the Westfields submarket of Fairfax County.
The buyers have announced further capital investments. These investments aim to expand the capabilities of the secured facilities and modernise the infrastructure across the entire portfolio. The exact purchase price was not officially disclosed by the companies. However, Bisnow reported, citing a source familiar with the deal, that the sale price was approximately US$67 million.
Strategic Alignment with Specialised Tenants
The five acquired properties are located at 4800 and 4840 Westfields Boulevard, and 14150, 14151, and 14155 Newbrook Drive. An entity affiliated with RMR Group divested the properties, according to records. For Meridian's platform for secured, mission-critical facilities, this acquisition represents the first step, according to Gary Block, Chief Investment Officer of the Bethesda-based company.
Mr Block commented on the company's objectives: “Our goal is to become a preferred landlord in the markets we serve for both traditional government contractors and the growing number of non-traditional defence and technology companies.” Harrison Street, which manages approximately US$109 billion in assets, confirmed that this strategy targets specialised properties that benefit from government-driven demand and high barriers to entry.
HLM Associates brings additional expertise to the joint venture. The company is experienced in the development and operation of facilities that support classified government operations. This underscores the strategic positioning of the acquired portfolio for a specific clientele of tenants with high demands for security and infrastructure.
