Tavaco Properties, a Los Angeles-based firm, has expanded its growing Greater Washington portfolio with another discounted office property. The company paid $28.5 million for a 272,300 square foot building in Falls Church, Virginia, as first reported by the Business Journals. The seller was the Hawaii-based James Campbell Company, which had acquired the 14-storey property at 3110 Fairview Park Drive in 2016 for $43.7 million.
This acquisition represents the third office property in the D.C. area that Tavaco Properties has acquired since the end of last year, bringing the total investment volume to nearly $65 million. Tavaco specialises in acquiring and optimising underperforming assets. Already in March, a Tavaco subsidiary paid $8.2 million for the 100,900 square foot Twinbrook Plaza in Rockville, Maryland. This amount is approximately half of the $15.5 million paid by an MRP Realty subsidiary in 2016.
Strategic Portfolio Expansion
Furthermore, Tavaco acquired the eight-storey, 275,480 square foot Ballston Station property in Arlington for $28 million at the end of 2025. The State Teachers Retirement System of Ohio had bought this property approximately 30 years ago for $58.2 million. Tavaco's strategic alignment aims at acquiring properties with potential for value appreciation, especially in a changing office market.
Sam Tavakoli, Managing Director at Tavaco, stated in a comment to the Business Journals that he considered Fairview, Ballston Station, and Twinbrook Plaza to be long-term additions to the Tavaco portfolio. He also expected that ongoing return-to-office trends would support demand for well-managed buildings. Indeed, office attendance in the US increased by 6 percent in the first half of the year, although on-site presence remained 31 percent below 2019 levels.
Shift in Seller's Investment Strategy
Meanwhile, the James Campbell Company is reducing its national involvement in the office sector and increasingly focusing on industrial assets. This shift in investment strategy reflects broader trends in the real estate market, where institutional investors are adapting their portfolios to current market requirements. The sale of the property in Fairview Park Drive is an example of this realignment.
- —Property: 3110 Fairview Park Drive, Falls Church, Va.
- —Buyer: Tavaco Properties
- —Seller: James Campbell Company
- —Purchase Price: $28.5 million
