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Saturday, December 10, 2016

Skyline Center for sale

The Skyline Center
The Skyline business campus in Bailey’s Crossroads will be sold at auction to the highest bidder on Dec. 21, the Washington Business Journal (WBJ) reports.

The property is being sold – in a substitute trustee’s sale – from the steps of the county courthouse after the owner, Vornado Realty Trust, defaulted on the terms of its $678 million mortgage.

The 2.6 million square foot property, consisting of eight buildings, is the fifth-largest tax-generating property in Fairfax County, with a taxable assessment of nearly $325 million, WBJ states. But that’s a sharp drop from an assessment of more than $680 million in 2009.

Occupancy rates have plummeted to just over 40 percent. Among the tenants are the U.S. Fish and Wildlife Service, U.S. Department of Justice, Leidos Holdings Inc., and Science Applications International Corp.

According to WBJ, “the offering is likely to generate a significant amount of interest from developers, more so for the prospect of redeveloping or repositioning the struggling campus than the less feasible prospect of a fresh coat of paint and a new marketing campaign to try to bring it to full occupancy.”

UPDATED, Dec. 21: No one bid on Vornado Realty Trust’s Skyline complex at a Dec. 21 foreclosure auction, the Washington Business Journal reports. That means the eight-building, 2.6 million-square-foot property in Bailey’s Crossroads, which is more half vacant, will be sold for $200 million to representatives of the noteholders that initiated the auction.

16 comments:

  1. Another Mason Dump Disaster. The County may want to make this a Social Services Center for the entire state of Virginia.

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  2. Without good mass transit that doesn't rely on stopping at traffic lights this disposal will further contribute to the decline of this one time jewel of Fairfax County. The BoS better step up to plate with substantial visionary plans before the entire area begins to get red lined by the banks. No one wants to invest in a declining area that has a disenfranchised government without economic and infrastructure investment and a sound vision for the future. They are too busy developing DC and Arlington.

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    1. No, no, no--you're simply supposed to say, "Mason District is a Dump" or something to that effect. Your words are too measured and insightful to be appreciated by the many Neanderthal readers on this site.

      I however, thank you for sharing your thoughts. Good points.

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    2. I am not sure how I feel about this. The major problem with this campus is getting in and getting out. I wish somone would take the time and money to make a Reston Town Center like area of the whole Baileys Crossroads space. Maybe the value is not there yet but I think it is coming. I feel the whole area is misused and under valued. Traffic is definitely a problem but with a single development I feel it could be worked out. I feel that if not now, eventually this area will be developed and sought after. The location seems to be too good.

      The mixed-use development proposed for Beauregard corridor is hopeful and shows that investors are interested in this area.

      http://annandaleva.blogspot.com/2016/08/mixed-use-development-proposed-for.html

      I am not sure why so many people, or a few vocal people, are so negative with anything that is proposed for this area. Happy people are not this negative.

      I know people who lived in DC from the late 80's, in rough areas which are now gentrified and desired. They were vocal but they were advocates.

      If people are not happy with how it is now but oppose all change what does that tell you?

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  3. i hope the district taco sticks around. they should turn the offices into living space.

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  4. A mini Reston Town Center is an attractive idea. However, we need an emphasis on business in the area to help the tax base without impacting our schools. Mason District has twice the density of any other district, so we really need to lay off the residences as they add to our tax burden. Residences = children = increased pressure on the schools. Residences = people 24/7 = increased pressure on our public services and infrastructure.

    We need to be smart about development in Mason District. With attractive shops we can draw customers from Alexandria and Arlington, which makes development more attractive than just the 22041 zip code demographics. I hope there is a developer out there who can see the potential instead of what we are now. The customer base at Trader Joe's is a good example of who would come to shop. TJ's buyers travel from Arlington and Alexandria, as well as Falls Church.

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    1. FYI Mason's population density (8/acre) is nearly equal to providence (7.9), and only slightly higher than Lee and Braddock (7.1 and 7.0). Just food for thought, Arlington's population density is nearly twice that of Mason district. Let's also bear in mind the population of Mason has DECREASED from 2010 - 2015. Also, I'm not sure I buy the residences = increased tax burden argument. It implies that every new residence is jam packed full of kids and the adults don’t contribute via county taxes. I said it before and I'll say it again, the fastest growing demographics in Mason and Fairfax as a whole is 55 and over. Under 19 has been stagnant or DECREASED since 1990. Build more houses.

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    2. more people means more biz want to move to our district and offer better things than we currently have. also more people is more tax revenue and most of the people aren't going to have children. you try to make it more of a place that 20 year olds want to live vs families.

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  5. More people means more burden on our infrastructure, services and schools. Family apartments do not generate enough tax revenue to offset the burdens they incur. Businesses generate tax revenue without the added burden. Go easy on the new residential and build up business. Brick and mortar shops are back in style. Let's attract them to Bailey's Crossroads where the adjacent demographics have the income to support quality stores.

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    1. Anonymous12/12/16, 11:38 PM so basically you do not like it how it is and do not want it to change.

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    2. so lets become a 2 lane road with houses every 5 acres? no one is going to the businesses as is, having less people isn't going to help. we need more people in the higher income levels.

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  6. Take land use 101. Learn about our tax base. Learn about infrastructure and roads and transportation. Then make comments. Build, build, build without considering the big picture exacerbates our situation.

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    1. That does not make any sense!

      If we did any of these things you are noting then Baileys would not be the intended Gross Ghetto that it is and then we wouldn't need the social services palace. That would foil all of the BoS plans for SE Quadrant.

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  7. Any word on who bought Skyline Center today?

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  8. Who keeps saying that Penny is "in the pocket" of developers? Can there be a more damning indictment of her tenure than this? Can Trump snatch up this property prior to inauguration? http://www.bizjournals.com/washington/news/2016/12/21/noteholders-snap-up-vornados-skyline-for-200-m.html

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  9. I hope it wasn't purchase by a bunch of Indian, Asian or Middle eastern nationalists. They will turn it into a Culmore East!

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