The RMR Office Property Fund has acquired a Richmond, Virginia-based office building for about $56 million. The property is 98 percent leased and includes new four-story parking garage, new roof, new fitness center and cafeteria as well as updated lobbies.
NEWTON, Mass.–(BUSINESS WIRE)–The RMR Office Property Fund LP (“the Fund”) today announced that it has acquired 9954 Mayland Drive, a 355,449 square foot, multi-tenant class A office building located in Richmond, Virginia. The property was acquired for a purchase price of approximately $56 million, excluding acquisition related costs, or a 7.2% cap rate.
Renovations totaling $16 million were recently made to modernize the property and include a new four-story parking garage, new roof, new fitness center and cafeteria as well as updated lobbies, elevators and building mechanicals. The multi-tenant building is 98% leased and includes two investment grade rated tenants that lease more than 70% of the building square feet for a weighted (by revenue) average lease term of 5.2 years.
“The acquisition of 9954 Mayland Drive underscores the target characteristics we seek for the Fund as a core property with its strong suburban office location, robust tenant roster and excellent physical condition,” said Chris Bilotto, Vice President, The RMR Group and Portfolio Manager, The RMR Office Property Fund LP. “The property is located in one of Richmond’s premier suburban office markets near retail and dining amenities, direct access to I-64 and close proximity to suburban Richmond residential areas. Additionally, the building is WELL and LEED AP Certified and leased to several prominent tenants for both corporate headquarters and strategic business operations.”
About The RMR Office Property Fund LP
The RMR Office Property Fund LP is a private, open end core plus fund focused on the acquisition, ownership and leasing of a diverse portfolio of multi-tenant urban infill and suburban office properties located in non-gateway cities throughout the U.S. The Fund is managed by The RMR Group LLC, the majority owned operating subsidiary of The RMR Group Inc.
About The RMR Group Inc.
The RMR Group Inc. (Nasdaq: RMR) is a holding company and substantially all of its business is conducted by its majority-owned subsidiary, The RMR Group LLC. The RMR Group LLC is an alternative asset management company that was founded in 1986 to invest in real estate and manage real estate related businesses. RMR’s business primarily consists of providing management services to five publicly owned real estate investment trusts, or REITs, and three real estate related operating companies. As of September 30, 2018, The RMR Group LLC had approximately $30.1 billion of total assets under management, including more than 1,700 properties, and employed almost 600 real estate professionals in more than 30 offices throughout the United States; the companies managed by The RMR Group LLC collectively had over 52,000 employees. The RMR Group Inc. is headquartered in Newton, Massachusetts.