Costco Buys Office Building In Newington From Bethesda-Based Finmarc

SPRINGFIELD, VA — Costco Wholesale has acquired a two-story office building next to one of its retail stores in Newington from Finmarc Management Inc., a commercial real estate investment firm based in Bethesda, for $6.55 million, Finmarc said Tuesday.

The 27,000-square-foot building, at 7375 Boston Boulevard in Newington, is located next to the Costco Wholesale retail store at 7373 Boston Boulevard.

Finmarc bought the two-story building in June 2022 as part of an 11-building acquisition consisting of about 740,000 square feet of office, industrial and data center space on Boston Boulevard. Finmarc paid Boston Properties Inc. $127.5 for the buildings, known as the VA 95 portfolio.

The two-story building, located on a 2.81-acre site, was vacant at the time of the sale to Costco, Finmarc said.

"Part of our decision when acquiring the VA 95 portfolio last summer was our belief of the strong opportunity to strategically sell certain buildings parcels for higher and better uses," Finmarc Co-Founder and Principal David Fink said in a statement Tuesday. "The building parcel situated adjacent to the existing Costco perfectly matched that profile and represents our first opportunity to execute this thesis."

"The ability for Costco to expand its footprint makes perfect business sense in their continuing mission to find better and more efficient ways to provide best-in-class services to its members," Fink said.

Costco did not disclose its plans for the building or parcel at the closing of the deal, Finmarc said.

The building on Boston Boulevard is less than two miles from a site on Loisdale Road in Springfield under consideration by the General Services Administration for the new FBI headquarters.

"Generally speaking, the government's presence in the area is a great benefit to the buildings we own," Finmarc said in a statement emailed to Patch. "The portfolio sits adjacent to NASA and Department of State and Customs Borders lease properties on Boston Boulevard. An FBI headquarters would enhance our ability to lease in the future."

Finmarc’s VA 95 portfolio consists of single-story and two-story buildings ranging from 27,000 to 105,000 square feet of space, and are situated close to Fort Belvoir, the National Geospatial-Intelligence Agency and Marine Corps Base Quantico.

The government presence in the area has helped produce record low vacancies for industrial real estate in the area, the company noted. No new buildings are currently under construction in the area, and no new commercial office buildings have been built in the Newington and Springfield market over the past six years, according to Finmarc.

"We believe well-located and best-in-class flex/office and industrial buildings situated in the outer ring suburbs will continue to flourish, and we remain extremely confident in the long-term economic fundamentals of the Springfield and Northern Virginia submarket," the company said.