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7 Corners Commercial Buildings in F.C. Up for Auction Dec. 14

Lot Includes Local Animal Hospital

The future is uncertain for Seven Corners Animal Hospital. The buildings that house the hospital and an adjacent pet kennel the hospital uses will be auctioned Tuesday, Dec. 14, to the highest bidder or bidders. Owned by T Tran Inc., the buildings are being auctioned because the company has filed for Chapter 11 bankruptcy.

Lot Includes Local Animal Hospital

The future is uncertain for Seven Corners Animal Hospital.

The buildings that house the hospital and an adjacent pet kennel the hospital uses will be auctioned Tuesday, Dec. 14, to the highest bidder or bidders. Owned by T Tran Inc., the buildings are being auctioned because the company has filed for Chapter 11 bankruptcy.

“The goal is to sell the property in a timely manner and pay off their creditors,” said Jeff Stein, vice president of Tranzon Fox, a national real estate auction company.

The two properties are located at 6300 Arlington Blvd. and 6801 Wilson Blvd. The Arlington Boulevard property is a 2,250 square foot, two-story stone building set on an 8,298 square foot lot of land. The Wilson Boulevard property is a 14,996 square foot, 2-story brick building set on a 14,670 square foot lot.

The properties will be auctioned both separately and as one unit.

“We are offering them separately and together,” Stein said. “So if we have a buyer that wants 6300, and a different buyer that wants 6801, we can sell them that way. It just depends on what the market says, if they should be split or stay together.”

Because the two properties are adjacent to one another, they could be particularly valuable to purchasers who wish to bid on the properties together, combining for over 17,000 square feet.

“These properties are currently leased but are ripe for redevelopment,” reads an auction announcement on the Tranzon Fox website.

“If you want to redevelop the property, you obviously have a larger footprint to work with,” Stein said of the benefits of buying the adjacent-lot properties, too.

The Arlington Boulevard property is located in Fairfax County, and the Wilson Boulevard Property is located in Falls Church City.

“There are always difficulties in working across lines jurisdictionally. However, an experienced developer should be able to make it work,” Stein said.

While redevelopment is an option, Stein said not all potential buyers his company has met with have that in mind.

“There are a number of people looking to use the buildings in their current state,” Stein said.

Stein said that the tenants of the buildings are not involved in the bankruptcy auction, as the buildings’ owner is the party going through bankruptcy proceedings. Thus, the disposition of the Seven Corners Animal Hospital remains up in the air.

The Wilson Boulevard property is leased on a month-to-month basis, and brings in $3,000 a month in rent. The Arlington Boulevard property is leased through December 2011, and brings in an annual rent of $92,318. While this lease has a renewal option, the Tranzon Fox website says that this clause may be invalid. At both properties, the tenant is responsible for all utilities, interior maintenance and real estate taxes.

“It means that [the buyer or buyers] will have income while they are getting their plans together,” Stein said. “We look at that as a positive.”

Based on information provided by Tranzon Fox, the Wilson Boulevard property was valued at $1,650,800 in a 2010 tax assessment, and the Arlington Boulevard property was valued at $590,300.

Stein said, however, that he could not estimate how much the properties would bring in at auction.

“We encourage people to come out and bid on what they feel the property is worth, and the highest bidder will be taken to the bankruptcy court for approval,” Stein said. “We don’t put a floor on it, we don’t put a ceiling on it, we just say here’s the property, here’s the opportunity, and let the market tell us what the property is worth.”

“I think it’s rare that you find commercial real estate in Falls Church for auction, where the opportunity exists to buy at today’s market price, which is reduced significantly from the peak market price,” Stein said. “This is a unique opportunity and anyone who is interested in commercial real estate in Falls Church needs to take a hard look at this offering.”

 

 

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