Starwood Pays $4M an Acre to Build Data Centers

The Board of Supervisors in Virginia’s Fairfax County have agreed to sell an “underutilized” section of the county’s police training campus in Chantilly, ostensibly for more data center development. 

The county will sell roughly one-third of the 128-acre campus at 3721 Stonecroft Boulevard to an affiliate of Starwood Capital Group for $166.8 million. The deal for the 42-acre parcel will enter into a contingency term until early 2027, according to the Business Journals, which first reported the news

Starwood’s exact plans for the site were not immediately clear, though the county has indicated that the Miami-based developer aims to build a data center. Indeed, Starwood is actively developing a roughly 60-acre data center campus not far from the Chantilly property, dubbed Renaissance Technology Park. The developer late last year filed plans to extend that project by another 400,000 square feet on 8 acres it purchased from Word of Grace Christian Church in 2023 for $25 million. 

The Chantilly site does not include entitlements or land-use approvals for new data center development. A spokesperson for Starwood did not immediately respond to a request for comment.

“The site remains an important location for police training, but the current facilities are spread out in a way that leaves portions of the property underutilized,” the county said in its February announcement of the potential deal. “By moving and grouping these facilities together, the county can free up land to sell. The funds from the sale will defray costs to ensure Fairfax County has a modern police training facility.”

The county estimates that a potential data center development could generate more than $20 million in tax revenue within its first year of operation. Proceeds from the sale will support the redevelopment of the aging police training center, and will include a new criminal justice academy, firearms training grounds, driver training infrastructure, K-9 unit training zones and other improvements, per the county. 

If the sale is finalized, construction of the new police facilities are expected to occur from mid-2028 to early 2031. 

Fairfax County is hardly the only entity selling rural land in Northern Virginia for outsize returns, particularly as data center development continues to ramp up in the region. Last month, Baltimore-based Merritt Properties sold a roughly 40-acre parcel in Ashburn to data center developer Cologix for $375 million. Late last year, meanwhile, Chuck Kuhn’s JK Land Holdings traded 97 acres in Leesburg to SDC Capital for an eye-popping $615 million. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.


Discover more from Home Loans Network | HELOC, Mortgage & Real Estate Investor Financing By the Real Estate Deal Room |PH: 312-392-0664

Subscribe to get the latest posts sent to your email.

Leave a Reply

Ebonie Beaco

Real Estate Financing Strategies for Homeowners & Investors

Stay informed with expert insights on HELOC loans, cash-out refinancing, DSCR investor loans, fix and flip financing, and real estate investment strategies.

Capital Group Buys L.A. Office Tower for Around $210M: Sources

Capital Group, one of the largest investment management firms in the world, announced it has entered an agreement to acquire the Bank of America Plaza office tower in Downtown Los Angeles.  Brookfield sold the 55-story building at 333 South Hope Street for about $150 per square foot, a source familiar with the office tower told…

Keep reading

Reuben Brothers Pay $200M for Retail Complex on Palm Beach’s Worth Avenue

The Reuben Brothers have extended their South Florida real estate shopping spree.  The British billionaire investors, alongside Crown Onyx, paid $200 million for a retail complex on Palm Beach’s swanky Worth Avenue, property records show.  Called the Esplanade, the two-story property totals 128,779 square feet, occupying nearly a full block, at 150 Worth Avenue. Tenants…

Keep reading

Hanover Capital Refis Long Island City Retail Property With $26M Loan

Vorea Group has landed a $25.8 million loan to refinance a newly developed retail asset in Long Island City, Queens, Commercial Observer has learned. Hanover Capital provided the loan for the developer’s 52,578-square-foot property at 10-04 Borden Avenue that opened in 2024. It’s currently 100 percent leased to indoor skydiving facility iFly, which occupies 14,311…

Keep reading

Data Security Firm AvePoint Inks 8K-SF Lease at Vornado’s Penn 2

AvePoint, a tech company specializing in data protection, security and compliance, has signed an 8,000-square-foot lease for its first New York City office at Vornado Realty Trust’s Penn 2 office tower, Commercial Observer has learned.  The company, which has its global headquarters in Jersey City, N.J., will occupy space on the 24th floor for an…

Keep reading

New York’s Residential Building Workers Union Sets Strike Vote

Members of labor union 32BJ SEIU, which includes residential building services workers across New York City, agreed on Wednesday to authorize a strike vote if ongoing negotiations with real estate industry leaders fail. The four-year, industrywide labor agreement that covers the union’s 34,000 members expires April 20. The final strike vote, set for April 15,…

Keep reading

Thor Equities Pays $56M for 1165 Broadway

Thor Equities has purchased David Haddad’s 1165 Broadway for $56 million, Commercial Observer has learned.  The 58,000-square-foot office and retail building is in Manhattan’s NoMad district, at the corner of Broadway and 27th Street. It boasts full occupancy, according to Thor Equities. Current tenants include music publisher Primary Wave and luxury footwear brand Christian Louboutin.…

Keep reading

Melius AI Leases 5K SF at 205 West 28th Street

Class A office building 28&7, at 205 West 28th Street in Manhattan’s Chelsea neighborhood, is now fully occupied thanks to a pair of leases totaling 6,636 square feet, landlord brokerage Cushman & Wakefield announced Wednesday.  The larger of the two deals was a 4,595-square-foot lease with Melius AI, a company that offers businesses training in…

Keep reading

Jack Doyle’s Pub Signs for Another 15 Years at MetLife’s 240 West 35th Street

Jack Doyle’s Pub & Restaurant, a classic Irish pub brand, extended its lease at 240 West 35th Street in Midtown South. The pub’s footprint spans 6,295 square feet inside the mixed-use building, according to brokers Lee & Associates NYC. The 15-year deal encompasses retail space on the ground floor and mezzanine of the 18-story building,…

Keep reading

Rates Ease Despite Conflicting Iran War Headlines

The past 24 hours have seen multiple news stories with seemingly contradictory updates regarding the state of the Iran war. There’s a ceasefire. There’s no ceasefire. There’s negotiation. There’s no negotiation, etc. As far as the rate market is concerned, the most important development has been the general appearance of a shift toward diplomacy and…

Keep reading

Miami Beach’s Goodtime Hotel Faces $149M Foreclosure Suit

The good times appear to be over at the Goodtime Hotel in Miami Beach, which counted famed music producer Pharrell Williams and Miami hospitality mogul David Grutman as partners, after the lender launched a $149.3 million foreclosure lawsuit. CIM Group sued entities tied to the developer and owner of the 266-room property, Eric Birnbaum and…

Keep reading

Cofe Properties Buys Doral Office Buildings for $63M

A joint venture led by Ascentris has sold off two buildings within the Westside Plaza office campus in Doral, Fla., nearly two months after launching the multifamily conversion of a third building. The partnership, which also includes Highline Real Estate Capital and Square2 Capital, sold Westside Plaza I and III to Cofe Properties for about…

Keep reading

Citi Refis Brooklyn Retail Asset With $29M CMBS Loan

Developer Michael Orbach has sealed $28.5 million of commercial mortgage-backed securities (CMBS) debt to refinance a portfolio of retail assets in Clinton Hill, Brooklyn, Commercial Observer has learned. Citi originated the five-year, five-rate CMBS conduit loan for seven contiguous retail condominium units spanning three buildings at 484–526 Myrtle Avenue. Arrow Real Estate Advisors arranged the…

Keep reading

Highest Mortgage Rates Since August 2025

March 2026 continues to be an unpleasant month for mortgage rates–a fact almost exclusively due to the Iran war. Even if the war were to end today, there’s been sufficient disruption to infrastructure and a big enough initial spike in energy prices to create what economists refer to as “second round effects.” In simpler terms,…

Keep reading

Hudson Companies, Broadway Builders Ink 18K-SF Lease at 902 Broadway

New York City-based real estate development firm Hudson Companies and its affiliate Broadway Builders have signed a new 11-year, 18,200-square-foot lease at the Rosen family’s 902 Broadway, Commercial Observer has learned.  Both firms specialize in the development and construction of residential, mixed-use and commercial projects in the New York metropolitan area. The joint tenancy will…

Keep reading

5 Courses to Boost Your Business’ Profitability this Spring

Now is a critical time for builders to tactfully manage their budgets and strategically plan for the future to put themselves in the best position for success. NAHB will host several live online courses this spring that will focus on helping builders thrive by refining their skills in estimating, communicating, designing and more.

Keep reading

Clarion Partners Sells New Broward Warehouse for $38M

Clarion Partners and Cadence Partners sold a newly completed distribution warehouse in Hollywood, Fla., for $38.3 million, property records show.  Drug compounding company Hallandale Pharmacy purchased the 98,860-square-foot asset called Stirling Logistics Center. The 32-foot-tall building sits just west of Interstate 95 at 2910 Stirling Road, about five miles south of Fort Lauderdale-Hollywood International Airport. …

Keep reading

Steakhouse Delmonico’s to Open 12K-SF Restaurant in Midtown

After first opening in Manhattan’s Financial District in 1837, steakhouse Delmonico’s is set to open a new restaurant in Midtown. Delmonico’s Hospitality Group (DHG) has signed a long-term lease for 11,735 square feet at the base of 1330 Avenue of the Americas, a 40-story office tower jointly owned by Nassimi Realty, Creed Equities, Hakimian Capital…

Keep reading

Redfin Economists’ Weekly Take: Iran War Drives Rate Volatility

This Week In A Nutshell: The Iran War continues to fuel market volatility as it enters its fourth week, particularly as the White House signals it is seeking a resolution. Upcoming Attractions   This week will feature many speaking engagements from various Fed officials, but key economic data releases will be scarce. The primary focus…

Keep reading

Mortgage Rates Move Modestly Lower Amid Market Volatility

Mortgage rates are dictated by bonds and bonds had a volatile day. During overnight trading hours, bonds suggested we should brace for the impact of even higher rates. Things changed just after 7am ET following headlines that suggested progress on the Iran war.  Although volatility continued in the ensuing hours, bonds ultimately settled in stronger…

Keep reading

CMBS Loan Backed by Lurin Capital Townhouse Community Headed to Special Servicing

The commercial mortgage-backed securities loan on an apartment complex owned by an embattled real estate developer is headed to special servicing following a recent bankruptcy and numerous lawsuits.  The $61 million loan, secured by Estates at Palm Bay, a 300-unit townhouse community in Fort Walton Beach, Fla., has been sent to special servicing after sponsor…

Keep reading

Sunday Summary: War, Oil Blockades, Interest Rates — Oh My!

As of yesterday, the United States and Israel entered week four of their conflict with Iran — and there are a lot of nervous people watching and waiting. On a purely self-interested level, we have to wonder what a global shock like a war and the subsequent closing of the Strait of Hormuz, a chokepoint…

Keep reading

Boutique Art Deco Hotel in Miami Beach Could Expand

The owners of the boutique San Juan Hotel in Miami Beach want to expand the historic property by adding a five-story structure, according to an application to the City of Miami Beach. The four-story, Art Deco hotel sits at 1680 Collins Avenue across the street from National, Delano and Sagamore oceanfront resorts. The 31,033-square-foot San…

Keep reading

NYC’s Real Estate Future Hinges on Development Incentives, Safety: Panelists

Some of the biggest names in and around New York City real estate gathered over coffee and croissants at Commercial Observer’s annual Future of New York event held March 19 at Marx Realty’s 10 Grand Central to discuss the impact of the new mayoral administration, shifting market trends, and the increasing importance of public-private partnerships…

Keep reading

Escalating Iran War, Rising Oil Prices, Fed Uncertainty Push Mortgage Rates to 6-Month High

The daily average mortgage rate rose to a six-month high of 6.53% on March 20.  Mortgage rates are jumping because the Iran war is escalating, increasing the likelihood that oil prices will stay higher longer, and because of the Fed’s reaction to it.  News broke on March 20 that the U.S. is sending thousands more…

Keep reading

Jonathan Rose Companies Acquires Affordable Housing Complex in Inwood for $53M

Johnathan Rose Companies, a real estate development and investment company, has acquired a 126-unit affordable housing community at 210 Sherman Avenue in Manhattan’s Inwood neighborhood from Related Companies for $53 million, the company announced Friday.  The deal marks the eighth acquisition for the Rose Affordable Housing Preservation Fund VI, which aims to provide long-term housing…

Keep reading

The Newly Proposed Rules on Banks’ Capital Requirements: Here’s the Thinking

The day some banks have been hoping for has finally arrived — almost. U.S. banking regulators — including the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) — issued a series of proposals Thursday that, if officially approved after a 90-day comment period, will…

Keep reading

Fashion Brand WeWearAustralian to Open First U.S. Location at SoHo’s 69 Mercer Street

G’day mate! Are you ready for some DownUnderwear? International retailer WeWearAustralian will open its first U.S. location in Manhattan’s SoHo neighborhood, Commercial Observer has learned.  WeWearAustralian, an initiative supporting local Australian fashion brands, has signed a lease for 5,000 square feet at PEP Real Estate’s 69 Mercer Street, according to tenant broker Cushman & Wakefield.…

Keep reading

Stuf Storage Signs 8K-SF Lease at GFP’s 10 Astor Place

There’s about to be a lot of Stuf going on in the basement of 10 Astor Place. Stuf Storage, a self-storage company that partners with landlords to convert underutilized spaces, has signed a 10-year, 7,828-square-foot lease for the basement and ground floor of the GFP Real Estate-owned building west of Washington Square Park, according to…

Keep reading

Career Development Firm Fedcap Signs 38K-SF Lease at 39 Broadway

Employment services nonprofit Fedcap is establishing a presence in Manhattan’s Financial District. The organization, which focuses on helping people grappling with homelessness and those who have been through the criminal justice system, signed a six-year, 37,760-square-foot lease for a new headquarters at 39 Broadway, according to landlord Cammeby’s International Group. Cammeby’s did not immediately disclose…

Keep reading

Something went wrong. Please refresh the page and/or try again.

Discover more from Home Loans Network | HELOC, Mortgage & Real Estate Investor Financing By the Real Estate Deal Room |PH: 312-392-0664

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from Home Loans Network | HELOC, Mortgage & Real Estate Investor Financing By the Real Estate Deal Room |PH: 312-392-0664

Subscribe now to keep reading and get access to the full archive.

Continue reading