DRS Technologies, a defense contractor that saw about $3.2 billion in revenue last year, is moving its headquarters from Parsippany, N.J., to Crystal City in Arlington County.
"We just needed to be closer to our customer," DRS spokesman Brian Gallagher told Patch. "We need to keep our finger on the pulse down in that area."
DRS already has signed a seven-year lease for nearly 93,000 square feet of expanded space at 2345 Crystal Drive.
The company, which is headed by former Deputy Secretary of Defense Bill Lynn, is in line to receive a $1 million state incentive through the Governor's Opportunity Fund.
That grant, which would flow through Arlington County, stipulates that the company will add 125 new jobs over the next five years to the 26 it already has in Crystal City, and that DRS will invest $12.8 million in renovations, furniture and equipment here.
The average salary of the new jobs is about $165,000, according to an Arlington County Board report.
Thirty-eight employees from New Jersey will be brought to Crystal City as part of DRS' overall consolidation of operations.
DRS initiated talks with the state, which later brought in Arlington Economic Development. Arlington County sent a formal letter requesting the $1 million grant once negotiations were complete, said Sindy Yeh, business development manager for Arlington Economic Development.
The company develops, manufactures and supports "a broad range of systems for mission critical and military sustainment requirements, as well as homeland security," the county board report states.
Arlington County expects to see a 10-year commercial real estate tax benefit of about $693,000, plus $759,500 in personal property taxes, according to the board report.
The commonwealth of Virginia should see an $18 million benefit from the relocation, mostly from income and sales tax paid by the new workers.
The Arlington County Board is slated to approve final housekeeping measures for the state incentive on Saturday.