# Harrison Street, Meridian Acquire 431K SF NoVA Office Portfolio for Defense Sector Tenants
Meridian Group and Harrison Street Asset Management have purchased a five-building office portfolio spanning 431,000 square feet across two Northern Virginia campuses. The joint venture, which includes HLM Associates, closed on the Stoneleigh and Newbrook campuses in Chantilly within the Westfields submarket. Financial terms and purchase price remain undisclosed.
The deal marks a deliberate repositioning strategy focused on attracting national security, defense and intelligence sector tenants to the region. Northern Virginia has long served as a hub for government contractors and defense firms, but competition for trophy assets in the market remains intense. This acquisition positions the partnership to capitalize on persistent demand from federal agencies and their private sector contractors seeking prime office locations near Washington, D.C.
Harrison Street, a Chicago-based real estate investor with $73 billion in assets under management, typically targets institutional-quality properties with long-term lease stability. The firm specializes in government-occupied and mission-critical real estate across sectors including defense, aerospace and intelligence. Meridian Group operates as a full-service developer and real estate company with roots in Northern Virginia commercial development. HLM Associates brings local expertise and project management capabilities to the venture.
The Westfields submarket has emerged as a core node for Northern Virginia's commercial office market. Located in Fairfax County roughly 20 miles west of downtown Washington, Chantilly benefits from proximity to Dulles International Airport, major transportation corridors and the constellation of federal agencies headquartered throughout the region. The Stoneleigh and Newbrook properties occupy strategic positions within this geography.
For office landlords in Northern Virginia, this transaction signals renewed confidence in repositioned assets targeting high-security, government-adjacent tenants. The defense and national security sectors have proven more resilient than traditional commercial office space during the post-pandemic market shift. While many urban office markets have struggled with vacancy and tenant flight to suburban or flex workspace alternatives, government-contracted office space has maintained occupancy and lease rates.
Tenants in these sectors typically sign longer lease terms, ranging from five to ten years or more, and prioritize security certifications, technology infrastructure and proximity to federal facilities. These characteristics make properties more attractive to institutional investors seeking yield stability compared to traditional commercial office portfolios.
For existing tenants occupying space within the Stoneleigh and Newbrook campuses, the acquisition suggests continuity. The new ownership structure typically honors existing leases and focuses on retention and renewal rather than aggressive repositioning. However, tenants without long-term agreements face potential rate increases or lease restructuring upon renewal.
The acquisition reflects broader institutional investment patterns in Northern Virginia's commercial real estate market. Defense and intelligence spending remains politically resilient even amid federal budget pressures, supporting sustained demand for office space from contractors and government entities. Investors seeking stable returns in uncertain market conditions have pivoted toward mission-critical assets serving these sectors rather than competing for general-purpose office tenants in saturated suburban markets.
This deal adds to Harrison Street's growing footprint in Northern Virginia and the broader Washington metro region, where government contracting drives real estate fundamentals differently than most U.S. markets.