Fully-modernized Data Center and Office Building Features Numerous Renovations and Plans for New Athletic Field

The Meridian Group announced today it has closed on the sale of Tysons Technology Center, a data center and office complex on Science Applications Court in Vienna, Va.

Tysons Technology Center is located adjacent to the Capital Beltway and within a short drive to Tysons Corner Metro Station. This allows unparalleled access to the Capital Beltway, I-66, as well as the Dulles Toll Road and Route 7.

The Meridian Group, a real estate investment and development firm based in Bethesda, Md., sold the 280,000-square-foot campus to an undisclosed purchaser. The purchase price was $96 million.

“This transaction fit our investment strategy of acquiring underperforming assets and unlocking additional value,” said Dave Gelfond, Senior Vice President of Meridian. “It was a repositioning opportunity where we converted substandard office space to data space and increased leasing from 63 percent at acquisition to 91 percent at sale.”

Meridian was represented by Eric Berkman and Bill Collins at Cushman & Wakefield, and Jeff Zell and Louis Kluger at JM Zell Partners,

Tysons Technology Center consists of a 199,560-square-foot office and data center building and a 79,890-square-foot office building. Anchored by Leidos and GSA, the complex is 91 percent leased to a diverse mix of tenants.

Meridian purchased the complex from SAIC for $63 million in 2011 and invested more than $11 million in improvements since. They included renovations to the lobbies and comprehensive upgrades to the MEP/data infrastructure, including new chillers, UPS system, full replacement of the generator plant/switchgear, and upgrades to the cooling towers and EMS system.

Meridian also rezoned the property to allow for a full-sized lighted athletic field with synthetic turf and a sound wall to reduce noise from the Beltway. The park, slated to deliver in 2018, will be available to the public and managed by the Fairfax County Park Authority.

“The athletic field will be a true asset for the surrounding neighborhood and for Tysons as a whole,” Gelfond said.

Gary Block, Managing Director of the Meridian Group, led the firm’s efforts on the acquisition and sale of the property.

The Tysons Technology complex is about two miles south of another major Meridian Group development: The Boro, a 3.5-million-square-foot development featuring a vibrant mix of office, residential, entertainment and retail. It includes a flagship Whole Foods Market, the largest in the region; and Showplace Icon, a state-of-the-art cinema. Meridian also acquired the Boro land from SAIC, along with its three-building 640,000 SF complex, several years after purchasing Tysons Technology Center from SAIC.

The Boro is one of a number of projects owned by The Meridian Group in the DC area. Meridian’s acquisitions in recent years include:

- International Place, a 12-story office building at 1735 Lynn Street in the fast-evolving center of Rosslyn, Va. The Meridian Group is renovating and repositioning the 293,539-square-foot building.

- 1400 L Street, a 12-story Class A office building at the corner of L and 14th streets in Washington, DC. The firm is working on a major renovation to the 172,453-square-foot building, located less than two blocks from the McPherson Square Metro station.

- 11111 Sunset Hills Road, a Class A office building in Reston, Va. The 216,000-square-foot building is located near the Dulles Toll Road and the Wiehle-Reston East Metro station.

- The Hyatt Regency Bethesda, a 390-room upscale hotel located at 7400 Wisconsin Avenue. The firm is repositioning the well-known hotel, which sits atop the Bethesda Metro station.

- 800 K and 801 Eye Street, two adjoined office buildings in the campus formerly called Techworld and now known as Anthem Row. The firm is planning a major renovation of the office complex in Washington’s East End.

ABOUT THE MERIDIAN GROUP

The Meridian Group is a real estate investment and development firm based in Bethesda, Md. Since its inception in 1993, Meridian has acquired and developed more than 13 million square feet of office, residential, hotel, mixed-use, and land with a focus on the metropolitan Washington, DC market. To learn more, visit Meridian’s website at www.tmgdc.com.