The Boundary Cos. has acquired the Torpedo Factory office building, the real estate firm’s first buy in Old Town after inking a series of deals along Alexandria’s Eisenhower Avenue corridor.

Chevy Chase-based Boundary closed Monday on its $39 million purchase of 201 N. Union St., a roughly 106,000-square-foot building adjacent to the Alexandria-owned Torpedo Factory Art Center. The seller, Torpedo Factory Associates L.P., was an affiliate of The Realco Group.

Like the real estate firm’s other acquisitions, Boundary President John Wilkinson said he sees 201 N. Union as a long-term investment. It is proximate to Virginia Tech’s planned innovation campus and Inc.’s second headquarters, a factor Wilkinson had in mind in pursuing the off-market deal. The five-story building features waterfront views and ceiling heights ranging from 10 feet to 18 feet. The building and adjacent art museum draw their name from the the U.S. Naval Torpedo Station that operated at the site.

“It’s a beautiful building,” Wilkinson said. “Everything about the building is special, including its water view and ceiling heights.”

ALX had already set its sights on 201 N. Union St. for its second location before Boundary acquired the property. The coworking space provider, which opened its first location at 106 N. Lee St. in April 2018, plans to open at 201 N. Union this October. To be designed by BLDG Architecture LLC, the coworking space will feature private offices, dedicated desks and flexible seating, along with a 5,000-square-foot conference center.

The acquisition comes just over three months after Boundary paid $15.1 million for the Atlantic Self Storage site at 4900 Eisenhower Ave., Boundary’s third purchase along the Eisenhower Avenue corridor. The site stands to benefit from plans by Stonebridge Associates to remake the Victory Center property at 5001 Eisenhower Ave. with a mix of uses including residential and retail.

The acquisition coincided with a 25,000-square-foot lease with coworking space provider ALX Community, pushing the building from about 75% leased to fully occupied, as Alexandria Living first reported.

Originally published: Washington Business Journal, June 6, 2019, by: Daniel J. Sernovitz