|Three of the buildings at the Skyline Center.|
Somera Road Inc., a New York-based commercial real estate firm, has acquired the aging Skyline office complex in Bailey’s Crossroads for about $215 million, the Washington Business Journal reports.
The deal includes seven office buildings and a retail center anchored by Target. Somera plans to carry out a series of common area improvements and other upgrades in the near term and has retained OTJ Architects to renovate the Skyline 7 office building at 5275 Leesburg Pike.
Vornado Realty Trust relinquished ownership of the Skyline Center nearly three years ago after grappling with high vacancy rates and stopped paying debt service.
CWCapital, a special servicer retained by the various noteholders that held the debt on the property, retained Cushman & Wakefield to market the Skyline Center for sale. About 100 potential bidders from across the globe stepped up. Somera emerged as the winning bidder in June and closed on the acquisition Oct. 30.
Ian Ross, managing principal at Somera told the Washington Business Journal the property has significant potential to thrive under the right repositioning – with the addition of residential uses creating more of a mixed-use feel.
“I think everybody recognizes the need to bring vitality back to this center and really bring multifamily back into the marketplace,” Ross said. “When we look at what works in communities like Skyline today across the nation, it’s really important to have a healthy ecosystem of live, work, and play.”
According to the Washington Business Journal, the 1970s-era Skyline Center was the second most valuable commercial property in Fairfax County about a decade ago, when it was assessed at nearly $680.7 million. Its taxable assessment is now below $298.8 million.