Banyan Street Capital has acquired the fourth and final building in The District at King Farm, a 750,000-square-foot office complex in Rockville, Md.
Banyan Street, in a joint venture with BLT Green Hollow, acquired Irvington IV, a 240,000-square-foot office property at 805 King Farm Boulevard in a $32.5 million deal. Upon completing the deal, Banyan Street rebranded the building as District IV, and came to an agreement with NASDAQ on the renewal of its 48,000-square-foot lease as the building’s anchor tenant.
The building was acquired through a loan sale following the default on the mortgage by American Real Estate Properties, and the underlying title was transferred through a deed in lieu of foreclosure.
The deal completes Banyan Street’s acquisition of the Montgomery County campus. The group acquired the three other buildings at the site in 2020.
“It was a natural progression to acquire the remaining building and will be a benefit to the existing tenants who now have a more diverse suite of amenities that otherwise wouldn’t be available in a single suburban office asset of this size,” Zac Gruber, managing director at Banyan Street Capital, told Commercial Observer.
Banyan’s capital improvement plans for the property include renovations to the lobby, adding food and beverage options, making common area upgrades and recalibrating the four office buildings to better connect and share amenity spaces.
“This acquisition fits within our business plan of acquiring assets in well located markets and investing heavily in building upgrades to attract and retain tenants,” Gruber said. “We’re seeing office demand and attendance return in this market, and the NASDAQ lease renewal speaks to that.”
The Cushman & Wakefield team of Kevin McGloon, Peter Rosan and Megan Williams will handle leasing efforts at District IV.
Keith Loria can be reached at Kloria@commercialobserver.com.