Stanley Martin Companies acquired an 8.8 acre site located in the Herndon Enterprise Center in Herndon, Virginia for $21.3 million, which it will use to develop 55 traditional townhouses and 56 two-by-two townhouses.
The two-over-two townhouse concept consists of a townhouse divided into two two-story units stacked on top of each other. This configuration, which contains garage areas along the lane, represents the most efficient use of available land, the developers said.
Town of Herndon Planning Commission approved a rezoning to residential use for the parcel in 2018.
The land currently contains four single-storey commercial office buildings. Three of the buildings will be demolished to pave the way for Phase I of the new residential use, with the fourth building being removed at a later date to accommodate the Phase II development plan.
Finmarc management was the seller, having acquired the Herndon Corporate Center in 2016, as part of a larger portfolio of 26 buildings and 950,000 square feet previously owned by First Potomac Real Estate Trust.
“Finmarc Management is not a residential development company so after the company clears the property, [we] sought a residential development company to sell it to, and Stanley Martin Corporation emerged as the purchasing entity,” Neil Marcus, chief executive of Finmarc, told Commercial Observer. “We intend to deploy the funds generated from this sale towards new value-added opportunities that we continue to pursue throughout the Mid-Atlantic region.”
More than 100,000 people, with a median household income above $115,000, reside within a 3-mile radius of the Herndon Corporate Center, according to Finmarc.
Construction on the development is expected to begin later this year.
Cushman and Wakefieldit is Paul Norman and Jean Pellerito represented the seller in the transaction. It was unclear who the buyer’s broker was.
Requests for comment from the buyer and brokers were not immediately returned.
Keith Loria can be reached at [email protected].