One Loudoun in Ashburn Sells for $163 Million

ASHBURN, VA — Retail Properties of America, Inc. (RPAI), headquarted in Oakbrook, IL, announced Tuesday that it has entered into an agreement to buy One Loudoun Downtown for a purchase price of up to $163.1 million from Miller & Smith and North America Sekisui House, LLC, according to a RPAI release.

The sale will be closed in phases, with the first part, representing a purchase price of up to $125 million, expected to close by the end of 2016. The remaining phases, representing a purchase price of up to $38.1 million, are expected to close throughout the first three quarters of 2017 as construction is completed on buildings at the property.

The first phase consists of approximately 342,000 square feet, comprised of 236,800 square feet of retail and 105,200 square feet of office, which are 85.6% occupied and 89.7% leased. The remaining phases are currently under development and are expected to contain approximately 78,300 square feet of retail and approximately 46,300 square feet of office, which are 71.0% leased.

Located in Ashburn, One Loudoun was referred to as "the town's epicenter" by Money magazine, which named Ashburn in the top "50 Best Places to Live 2016" and No. 1 for job growth in the U.S. this week.

SEE: Ashburn the Best Place to Live in Virginia, Among Top in Nation: Money Magazine

"We are pleased with the opportunity to acquire One Loudoun Downtown, which demonstrates our ongoing ability to source compelling, high quality, strategically located retail assets in a very competitive investment environment," stated executive vice president, chief investment officer and chief operating officer Shane Garrison in a release. "This acquisition augments our significant footprint in the Washington, D.C. market and will allow us to leverage our local knowledge and considerable mixed-use experience to continue to transform the property into Loudoun County's premier shopping and entertainment destination."

"Miller & Smith and North America Sekisui House will continue to be the master developer of One Loudoun and we are excited for RPAI to join us in furthering the success of the project," said Bill May, vice president of Miller & Smith. "With their proven leasing and operating platform, RPAI will bring valuable retail expertise to the project that will ensure the continued vibrancy of One Loudoun as a whole."

The transactions are expected to close in 2016 and 2017, subject to certain closing conditions, according to RPAI.

Check back on Patch.com for updates on this developing story.

Photo courtesy of One Loudoun