Three assets in Northern Virginia currently owned by Thomas Properties Group are set to be sold or liquidated shortly before or shortly after the company closes its $1.2 billion merger with Parkway Properties, the company reported in a conference call with analysts on Thursday.
In the investor presentation for the merger, Thomas Properties Group (TPG) said it owns 25 percent of the interest in Fair Oaks Plaza, Reflections I and Reflections II. TPG owns its interest in these properties through a joint venture with the California State Teachers’ Retirement System (CalSTRS).
All of these properties were previously transferred to a special servicer for oversight. The buyer or buyers of the three properties has not been identified.
Fair Oaks Plaza is a 179,688 square foot office building in the Fairfax Center submarket near the intersection of Route 50 and I-66 in Northern Virginia. The 8-story building is clad in polished granite with full-height tinted windows, and has a two-story atrium lobby finished in brass and granite that is accented by solid-core full-height entry doors to tenant suites. Other design features include a circular, brick-paved drive entrance as well as 118 covered parking spaces.
Reflections consists of two Class A office properties, Reflections I and II, on the Dulles Toll Road in Reston, VA. Totaling 187,799 rentable square feet, Reflections is located between Reston Parkway and Fairfax County Parkway with access from Sunrise Valley drive.
Reflections I is a five-story office building developed by Harwood and Associates and completed in December 2000. Reflections II is a two-story building completed in 1984. It contains 64,253 rentable square feet on 5.2 acres of land.
As part of the merger announcement, Parkway said it had reached an agreement with Brandywine Realty Trust under which Brandywine would acquire all of Thomas Properties’ ownership interest in One & Two Commerce Square, two office properties in Philadelphia, based on an agreed property value of $332 million. These sales will close concurrent with the merger closing.
Also set to close with the merger is Brandywine’s acquisition of Four Points Centre, a 333-acre master planned project at the intersection of FM 2222 and RM 620 in the Northwest suburbs of Austin, TX. In addition to the two Class A office buildings on the site each containing about 194,00 rentable square feet, the project includes an adjacent land parcel with entitlements to build 980,000 square feet of Office and R&D plus additional entitlements for 650,000 square feet of retail, hotel and other mixed use. Utilities and roadways are in place to service this project.