TYSONS POINTE CASE STUDY – CLOSED JUNE 2025

Tysons Point is a two-building complex totaling 373,618 square feet. The properties have been institutionally owned and maintained from inception, with the prior owner having completed a $13M renovation designed by Gensler that included lobby renovations and the addition of a fitness center, a new conference facility, a tenant lounge, and an outdoor terrace. The buildings are situated in “The Hill” submarket of Tysons, which has always been a premier location and was further solidified with the development of The Boro, a 1.7M square foot mixed-use project anchored by one of the largest Whole Foods stores on the east coast and a raft of other retail amenities.

Our purchase price of $57.125M ($153/sf) is significantly below replacement cost and we are partnering with Real Capital Solutions (RCS) on this asset.

In the first 6 months of ownership we have:

- Financed the property

- Executed 39,179 square feet of leases across five transactions

- Designed and permitted 35K square feet of “spec suites” with Hickok Cole Architects

- Aggressively addressed deferred maintenance on the elevator and HVAC systems

- Laid the ground work for demising the property to create a legal parcel to maximize value on the 1600 International building for a future buyer

Underwriting Summary:

• Assumed Acq Cost: $57.1M ($153/rsf)

• Total Capitalization: $78.9M ($211/rsf)

• Year 1 NOI: $7.39M ($19.78/rsf)

• Year 1 Yield: 13.1%

• Un/levered IRR: 17.7% / 25.4% (Based on 60-month hold)

• Base Case Multiple: 2.2x (Based on 60-month hold)

• Walkscore: 83