Mark Center 2001, Alexandria, Virginia

Asset Acquired:

239,000 Class A Office

Location:

Alexandria, Virginia

Investment Year:

2019

Mark Center 2001 is a 239,000 square foot Class A office in Washington D.C. The property sits about three miles from the Pentagon and a quarter mile from the Department of Defense Headquarters. G8 acquired the property for $36 million in an off-market transaction directly from the previous bank lender after a borrower default. At the time of acquisition, the asset was 71% occupied by a two tenants with minimal remaining lease term.

 Upon purchase,  G8 immediately engaged with the larger existing tenant, that was occupying approximately 68% of the building to ensure their long-term occupancy. G8 negotiated with this US Government Defense tenant to increase building security and facilitate an expansion and extension of their lease to occupy the entire building and bring the occupancy to 100% with an extended term. As part of the extension, G8 and tenant constructed new security entrances, elevators and expanded the secured perimeter of the space.

 As a fully leased building with long term occupancy, G8 capitalized on the value creation and sold the building for $72 million  just 16 months after acquisition. The transaction produced a 78% IRR and a 2.16x multiple on invested capital for investors.