Double office deal closes near Innsbrook

Innsbrook's Westerre II changed hands in a two-building sale last week. Photo by Burl Rolett.

Office building Westerre II changed hands in a two-building sale last week. Photo by Burl Rolett.

An Atlanta-based real estate firm made a $22 million landing near Innsbrook last week.

The Simpson Organization bought Westerre I and II, a pair of office buildings with a combined 163,290 square feet on Westerre Parkway. The four-story buildings were sold by Zurich Insurance, and the deals closed Nov. 3.

The company paid $9.6 million for Westerre I, which has about 80,000 square feet and was built in 1988. The building is about 84 percent occupied.

Westerre II, with almost 90,000 square feet of space, sold for $12.4 million. That building is about 10 years newer than Westerre I and is 99 percent occupied.

The $22 million sales price figures out to about $135 per rentable square foot. Eric Robison, a Cushman & Wakefield | Thalhimer broker who represented the seller in the deals, said that number makes Westerre Richmond’s most expensive suburban office deal on a per-square-foot basis since before the recession.

“The Innsbrook submarket continues to be the most active and best-performing submarket in our region,” Robison said. “These buildings set themselves apart from several others because they’re so visible on West Broad Street, they have great access.”

The deal is also Henrico County’s third-largest office sale so far in 2014, trailing Westdale Real Estate Management’s $26.7 million acquisition at East Shore in April and the $22.5 million sale of Deep Run II in May.

The Westerre buildings have 26 tenants between them. Tridium Inc. takes the most space with about 32,000 square feet. Family law firm Batzli Stiles Butler and Interbake Foods both have about 11,900 square feet.

The two offices were the first properties built at Westerre Office Park, a four-building business center just off of Broad Street east of Cox Road. Trammell Crow Co. built Westerre I and II, and Liberty Property Trust added Westerre III and IV in 2006 and 2008. Lingerfelt Cos. owns Westerre III and IV.

Thalhimer brokers Dean Meyer and Mac Wilson are handling leasing for Westerre I and II’s new owners. Both buildings are listed at lease rates of $20.50 per square foot, about $1 higher than the average rate for Class A properties in Innsbrook, according to a Thalhimer market report for the third quarter of this year.

Innsbrook's Westerre II changed hands in a two-building sale last week. Photo by Burl Rolett.

Office building Westerre II changed hands in a two-building sale last week. Photo by Burl Rolett.

An Atlanta-based real estate firm made a $22 million landing near Innsbrook last week.

The Simpson Organization bought Westerre I and II, a pair of office buildings with a combined 163,290 square feet on Westerre Parkway. The four-story buildings were sold by Zurich Insurance, and the deals closed Nov. 3.

The company paid $9.6 million for Westerre I, which has about 80,000 square feet and was built in 1988. The building is about 84 percent occupied.

Westerre II, with almost 90,000 square feet of space, sold for $12.4 million. That building is about 10 years newer than Westerre I and is 99 percent occupied.

The $22 million sales price figures out to about $135 per rentable square foot. Eric Robison, a Cushman & Wakefield | Thalhimer broker who represented the seller in the deals, said that number makes Westerre Richmond’s most expensive suburban office deal on a per-square-foot basis since before the recession.

“The Innsbrook submarket continues to be the most active and best-performing submarket in our region,” Robison said. “These buildings set themselves apart from several others because they’re so visible on West Broad Street, they have great access.”

The deal is also Henrico County’s third-largest office sale so far in 2014, trailing Westdale Real Estate Management’s $26.7 million acquisition at East Shore in April and the $22.5 million sale of Deep Run II in May.

The Westerre buildings have 26 tenants between them. Tridium Inc. takes the most space with about 32,000 square feet. Family law firm Batzli Stiles Butler and Interbake Foods both have about 11,900 square feet.

The two offices were the first properties built at Westerre Office Park, a four-building business center just off of Broad Street east of Cox Road. Trammell Crow Co. built Westerre I and II, and Liberty Property Trust added Westerre III and IV in 2006 and 2008. Lingerfelt Cos. owns Westerre III and IV.

Thalhimer brokers Dean Meyer and Mac Wilson are handling leasing for Westerre I and II’s new owners. Both buildings are listed at lease rates of $20.50 per square foot, about $1 higher than the average rate for Class A properties in Innsbrook, according to a Thalhimer market report for the third quarter of this year.

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