Cambridge Portfolio

The seven-building Cambridge Portfolio had been recently acquired by Northwestern Mutual and Cambridge. The properties, totaling 511,896 sq. ft., are located in Fairfax, Tyson’s Corner and Reston, Virginia.

Challenges

• Northwestern Mutual and Cambridge sought to dispose of this portfolio of properties to take advantage of the hyperactive market and harvest some profit from this investment.
• Fairfax County was experiencing dramatic absorption, low vacancies and escalating rental rates.

Solutions

• NorthMarq Investment Services selected a handful of targeted buyers and quietly presented the portfolio for sale as a value-add investment opportunity. Each building was presented as an individual opportunity to retain ownership or sell in the near term.
• NorthMarq Investment Services demonstrated that the market would be receptive to an earlier-than-projected sale of the seven buildings and that buyers who had not seen the property would be interested in at least part of the portfolio.
• The sale price exceeded the targeted pricing required by ownership by more than 20%.
• The Cambridge and Northwestern Mutual Portfolio performed as presented. The new owners, Pacific Rim Investors and Buchanan Street Partners, were able to harvest profits and exceed their internal rate of return projections.
• The properties have consistently increased in value, and several owners have increased the value of their investments and have established long-term ownership.