OfficeClosedacquisition

Dulles Station East I

Herndon, VA·Mar 5, 2026, 5:10 PM

Deal Size

$50.0M

Cap Rate

Est. 9.00%

$/SF

$267

Size

187K SF

Occupancy

—

Market SignalNeutral (weak/10)

The acquisition of Dulles Station East I by KBS Realty Advisors for $50M is a strategic move given its location near a planned Metro station and its award-winning design. However, the lack of disclosed cap rate, occupancy, and WALT data makes it difficult to fully assess the investment's attractiveness. The property's competitive edge is noted, but without specific financial metrics, a cautious 'Hold' verdict is appropriate until more information is available.

Buyer Strategy

KBS Realty Advisors is known for acquiring and managing high-quality office properties. This acquisition aligns with their strategy of investing in well-located assets with growth potential, as evidenced by their existing portfolio in the greater DC area.

Seller Motivation

Seller information is not disclosed, making it difficult to ascertain motivation. Potential reasons could include portfolio rebalancing or capital recycling.

Market Signal

This acquisition highlights continued interest in suburban office markets with strong connectivity and infrastructure improvements. The involvement of an institutional buyer like KBS suggests confidence in the market's long-term fundamentals.

Parties

BuyerKBS Realty Advisors →

Location Analysis

Primary Market

Major employers in the area include government contractors, tech firms, and aerospace companies, leveraging the proximity to D.C. and Dulles Airport.

Herndon, VA, benefits from its proximity to Washington, D.C., which has seen steady population growth and high-income levels. The area is attractive for businesses due to its strategic location along the Dulles Toll Road and planned Metro expansion.

Dulles Station East I competes with other suburban office properties in the Herndon submarket. Its proximity to the Dulles Toll Road and planned Metro station gives it a competitive advantage over older assets.

The source does not provide specific data on new developments in the area, but the planned Metro station suggests potential for increased development interest.

Value-Add

The property's design and location suggest limited immediate value-add opportunities. However, lease-up potential exists if occupancy is below market norms.

Tenant Assessment

Mixed

Executive Signals

“KBS Realty Advisors is always in the market to buy and sell.”

Walter Foster·KBS Realty Advisors·bullish

“The site's proximity to a planned Metro station, combined with the design and high parking ratio, give the property a competitive edge.”

Stephen Evans·KBS Realty Advisors·bullish

Market Comparables

Dulles Station East I

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Dulles Station East I