Jones Lang LaSalle Americas, Inc. ("JLL"), as exclusive representative for Owner, is pleased to present this opportunity to purchase Dulles Executive Plaza ("DEP" or the "Properties"), two Class A office buildings consisting of 384,336 (BOMA) square feet. The Properties are located at 13530 & 13560 Dulles Technology Drive in Herndon, Virginia, and are collectively 94% occupied after undergoing a market leading, $4.7 million renovation in 2019. DEP is substantially leased to name brand government contractors such as Fortune 100 company Lockheed Martin (“Lockheed” or “LMT”), occupying 50% of RBA through November 2024, and Constellis, leasing 28% of RBA through June 2031. Lockheed has been at DEP for over 20 years and has invested significant capital in its on-site infrastructure, establishing the location as mission critical, highly secure, 24-7 operation for its Space Systems division.
Dulles Executive Plaza also provides investors with significant near-term development potential with over 850,000+ SF in additional density through re-entitlement. This embedded upside, along with durable in-place cash flow from entrenched credit tenancy, makes Dulles Executive Plaza one of the most compelling Covid-proof investment opportunities available in the Washington, DC marketplace today.
- 94% leased to entrenched government contractors with 5.5 years of WALT -> offers significant in-place cash flow and compelling yields
- Fortune 100 company Lockheed Martin occupies 50% of the complex with approximately two-thirds of their footprint operating 24-7 in secure space, for mission critical contract work that can only be done on-site
- Constellis, after an extensive Global HQ search, now occupies 28% of the complex (and 56% of DEP I), and conducts mission critical 24-7 operations on a secure full floor
- Recent market leading $4.7 MM renovation provides minimal go forward capital spend and ensures high probability of renewal for all tenants
- In-place rents are significantly below market (~10%) and at a substantial discount to new development (~40% discount), which offers investors embedded mark-to-market upside and certainty of renewal in the future
- Innovation Center's opening in 2021 (less than 10 minute walk from properties) will link DEP to the broader DC region via Metro, drive continued development, and further create a live-work-play environment that attracts and retains Northern Virginia's premier office tenancy
- The Dulles Toll Road is the epicenter of government spending in cloud and big tech (Amazon, Microsoft and Google all continue to grow in this market); $75 B of cloud computing contracts to be awarded throughout the region in FY 2021
- 850,000+ SF of additional density available provides significant upside potential with minimal parking replacement costs