Totaling 61,000 square feet of both medical and office space, the leases come on the heels of recent acquisition and partial flip that pushes firm’s Metro D.C. portfolio to nearly two million square feet
ATLANTA – (Feb. 3, 2022) Bridge Commercial Real Estate, a commercial brokerage subsidiary of Bridge Investment Group, announced today the execution of several lease agreements totaling over 61,000 square feet. These deals occurred during fourth quarter 2021 at Willow Oaks Corporate Center, a three-building, 584,000-square-foot Class A office campus in Fairfax County, Virginia near Washington, D.C. The leases come as Bridge acquired the entire property before subsequently selling one of the buildings.
Inova Health System recently signed a lease for 48,000 square feet of medical office space, located at the Willow Oaks Corporate Center. The largest of the signed deals, these offices will be an expansion of the Inova Fairfax Medical Campus, the top-ranked hospital in the Washington, DC metropolitan region.
Inova is Northern Virginia’s leading nonprofit healthcare provider, with 20,000 team members providing more than two million patient visits annually through an integrated network of hospitals, primary and specialty care practices, emergency and urgent care centers, outpatient services and destination institutes.
Built over a two-decade period spanning from the mid-1980s to early 2000s, Willow Oaks Corporate Center is comprised of Willow Oaks I (190,230 SF), Willow Oaks II (208,493 SF) and Willow Oaks III (185,124 SF). After acquiring all three buildings, Bridge Investment Group sold the 99% leased Willow Oaks III to Boyd Watterson Asset Management for $63 million, retaining a 64% leased 398,000 square foot portfolio consisting of Willow Oaks I and Willow Oaks II.
The campus has undergone several recent capital improvements, including updated lobbies, a renovated café, new and improved tenant lounge, an upgraded conference center, state-of-the-art fitness studio and a new complimentary coffee bar. Bridge plans to invest an additional $10 million into the property toward deferred capital expenditures, to further expand the amenity base and deliver more than 15,000 square feet of new high-tech spec suites. A new hotel-style tenant amenity center called the “Tree House” with an outdoor terrace will also deliver later this year.
“These lease agreements cement Willow Oaks’ reputation as a top-tier workplace destination in the market while also validating Bridge’s strategy of investing in fast-growing suburban markets that feature diversified tenant bases and access to premier shopping, dining and entertainment attractions,” said Brian Tretinik, Bridge Office’s Managing Director of Asset Management. “Our planned capital improvements will create additional amenities that differentiate the property from its competitors as Bridge continues to set the standard in Metro D.C. for creating engaging workplace communities that attract talent and bolster overall profitability.”
Located near the intersection of the Capital Beltway and Route 50 in the fast-growing Merrifield office submarket, the property provides excellent access to a wide array of Fortune 500 companies and other leading brands headquartered in the surrounding area, as well as a variety of top shopping, dining and entertainment destinations.
Willow Oaks’ proximity to the nearby Mosaic District mixed-use development and Dun Loring-Merrifield Metro Station have also made it a popular pick for companies seeking connectivity and access to premier amenities, with more than 148,000 square feet of new or expanded leases executed at the campus over the last two years.
Additionally, Willow Oaks Corporate Center has received WiredScore Gold and Silver certifications for superior connectivity and features EV car-charging stations, and an energy-management system. Common amenities include bike storage, an outdoor picnic area, carwash/detail service, private tenant balconies, concierge service, and multiple bus shuttles.
Bridge Commercial Real Estate will oversee renovations and property management services at Willow Oaks. Newmark will oversee leasing. The acquisition of Willow Oaks brings Bridge’s total office holdings in suburban Washington to nearly two million square feet. Other properties in the company’s D.C. portfolio include Makers Point (270,061 SF) in Reston, Virginia; Station Square (515,260 SF) in Silver Spring, Maryland; Skybridge Towers (444,817 SF) in Bethesda, Maryland; and 77 Upper Rock (235,210 SF) in Rockville, Maryland.
According to a recent report by Newmark, Northern Virginia’s Class A office market saw a return of positive demand in Q3 2021, with more than 285,000 square feet of total net absorption. The firm predicts that the region’s business friendly environment, concentration of Fortune 500 companies and return of real estate decision-making may lead to a release of pent-up demand over the next two years.
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About Bridge Investment Group: Bridge is a leading, vertically integrated real estate investment manager, diversified across specialized asset classes, with approximately $31.8 billion of assets under management as of September 30, 2021. Bridge combines its nationwide operating platform with dedicated teams of investment professionals focused on select U.S. real estate verticals: multifamily, affordable housing, seniors housing, office, development, logistics net lease, logistics properties, debt strategies, agency mortgage-backed securities and single-family rental.
About Bridge Commercial Real Estate: (“BCRE”) is a fast-rising player in the U.S. commercial office market that specializes in creating desirable, next-generation workspaces. BCRE provides world-class commercial office brokerage services, property management, accounting and commercial construction services for Bridge Office assets. With a proven blueprint that delivers long-term value for tenants and investors, our portfolio includes office properties uniquely positioned in dynamic, high-growth markets across the U.S. and continues to grow. We are laser focused on how companies work today – and will work tomorrow. Headquartered in Atlanta, Georgia and Salt Lake City, Utah, BCRE is a subsidiary of Bridge Investment Group.