Kenwood Sells Dulles Design Center After 23 Year Ownership
Sterling, VA - June 30, 2021 Dulles Design Partners, an affiliate of Kenwood Management Company, announced the sale of Dulles Design Center, its 45449 East Severn Way property to DIV Davin Dulles One, a Davin Holdings and Davis Company JV. The sale price of $27.5M represents an impressive 363% appreciation during Kenwood’s ownership. The 106,000 SF property is a showroom/warehouse distribution facility. At the time of sale, the property was 95.4% leased to such tenants as Northrup Grumman, Georgetown Cupcake, and Genuine Parts Company. Philip Ackley with Preferred Commercial Asset Company represented Kenwood in this transaction and secured the buyer.
Hank Bowis, Principal at Kenwood and General Partner in Dulles Design announced that the investor’s internal rate of return was 20.11%, after all fees and expenses. “We had intended to hold this quality asset for many more years because we believe in the strength of the Northern Virginia warehouse market. However, this off-market transaction represented a unique opportunity for us to significantly enhance our investors’ return at a record-setting price per square foot for this submarket.”
Kenwood intends to redeploy the capital in at least one new acquisition.
Kenwood owns and operates office, medical, flex and warehouse properties in the Washington DC and Baltimore submarkets.