Acquisition Represents Comstock's Fifth Addition to Company's Portfolio of Transit-Oriented Assets in the Past Year
RESTON, Va., April 07, 2020 (GLOBE NEWSWIRE) -- Comstock Holding Companies, Inc., (CHCI) - Get Comstock Holding Companies, Inc. Class A Report ("CHCI" or "Comstock") announced the acquisition of 11480 Commerce Park Drive, further expanding the Reston Station transit-oriented and mixed-use neighborhood to more than 40 acres surrounding the Wiehle-Reston East Metro Station.
CHCI completed the acquisition in an all-cash transaction on March 9, 2020 on behalf of a venture between CHCI and Comstock Partners, LC, a private company owned and controlled by Christopher Clemente, the CEO of CHCI. The 6-story, Class-A office building is situated on approximately 3.75 acres within the Commerce District of the Reston Station neighborhood adjacent to the Wiehle-Reston East Metro Station at the intersection of Wiehle Avenue and Sunrise Valley Drive. CHCI will generate market rate fee-based revenue in connection with the acquisition and management of the property pursuant to its existing master asset management agreement, which also provides for additional incentive-based compensation.
The 126,000 square foot office building is currently 82% leased to multiple high-quality tenants, including Young America's Foundation, Dev Technology, American Academy of Audiology, and others. This acquisition represents the fifth office building acquired by Comstock and its affiliated companies in all-cash, off-market transactions during the past 13 months and the fourth such building acquired in Reston, increasing total capital deployed for acquisitions of stabilized, transit-oriented assets to nearly $300 million in the same period. Comstock's latest acquisition increases the portfolio of Class-A and Trophy-Class office properties in its Anchor Portfolio of assets under management in Reston to include six stabilized Class-A and Trophy Class office properties totaling approximately 1 million square feet, enabling Comstock to achieve additional operational and leasing synergies with its existing Reston Station office portfolio.
Comstock is currently managing two additional Trophy-Class office towers under construction on Reston Metro Plaza; 1906 Reston Metro Plaza, a 203,000 square foot building scheduled to deliver later this year, which is approximately 55% pre-leased to Neustar; and 1902 Reston Metro Plaza, an approximately 225,000 square foot building that is scheduled to deliver in 2021 and is 100% pre-leased to ICF Global.
"This acquisition is consistent with our focus on select high-growth urban and transitioning "sub-urban" markets. The Reston Station neighborhood is at the forefront of the transformation taking place in the Dulles Corridor as a result of the arrival of Metro's Silver Line" said Mr. Clemente. "Our objective in Reston is to create a world-class mixed-use and transit-oriented neighborhood that is consistent with Fairfax County's Comprehensive Plan and that is a valued addition to the Reston community."
Since announcing in 2018 its plan to wind-down its subsidiary for-sale homebuilding operation and refocus its business exclusively on commercial real estate development, asset management and real estate related services, Comstock has increased real estate assets under management and development to more than 3 million square feet currently and approximately 7 million square feet at full build out of its Anchor Portfolio of mixed-use and transit-oriented properties located in Northern Virginia where global tech and consulting firms have been securing significant amounts of office space. During 2019, Comstock announced the completion of more than 500,000 square feet of new office leases in Reston Station, one of two large transit-oriented developments included in Comstock's Anchor Portfolio.
"The acquisition of 11480 Commerce Park Drive furthers our strategy of positioning Comstock as a premier asset manager and service provider for capital partners including HNW family offices and institutional investors, while complimenting Comstock's portfolio of managed assets that includes significant transit-oriented developments" said Tim Steffan, EVP, Asset Management, Development and Leasing for Comstock. "Incorporating this building into our Reston Station neighborhood furthers our ability to update and enhance the Commerce District of Reston Station where we are working on plans to expand neighborhood amenities to include the addition of a civic plaza adjacent to the entrance to the Metro Station while enhancing pedestrian access to Metro."
Building amenities include a state-of-the-art fitness center with full-service locker rooms, a conference center, tenant lounge and game room, and a Monumental Market, a grab and go convenience for tenants. Comstock intends to complete in-building common area and restroom upgrades. Comstock Commercial Management and Comstock's Park-X Management will manage the property.
The JLL Capital Markets team, including Matt Nicholson, Jim Meisel, Andrew Weir, Stephen Conley and Dave Baker represented the seller in the off-market transaction.
About Comstock Holding Companies, Inc.
Comstock Holding Companies, Inc. (Nasdaq: CHCI) is a real estate development, asset management and real estate services company that has designed, developed, constructed, acquired and managed several thousand residential units and millions of square feet of residential and mixed-use projects throughout the Washington, D.C. metropolitan market since 1985. In 2018, Comstock announced its plan to wind-down its subsidiary for-sale homebuilding operation to focus exclusively on commercial real estate investment, development, asset management and real estate related services. Anchoring CHCI's transition is a long-term asset management agreement covering two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area; Reston Station, a nearly 5 million square foot transit-oriented and mixed-use development in Reston, Virginia, and Loudoun Station, a nearly 2.5 million square foot transit-oriented, mixed-use development in Ashburn, Virginia, and additional development assets.
Comstock Holding Companies, Inc. is publicly traded on NASDAQ under the symbol CHCI. For more information, visit www.ComstockCompanies.com .
About JLL Capital Markets
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
Cautionary Statement Regarding Forward-Looking Statements
This release may include "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements. Additional information concerning important risk factors and uncertainties can be found under the heading "Risk Factors" in our latest Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Comstock Companies Media ContactShanna Wilson email@example.com 917-674-3096