Cassidy Turley Arranges $100M in Financing for 440 KSF Office Complex in Suburban DC
- Jan 15, 2014
A cool $100 million in financing has been arranged for National Gateway I and II, twin office properties totaling 437,400-square feet in Arlington, Va. Commercial real estate services firm Cassidy Turley orchestrated the transaction on behalf of The Meridian Group, owner and developer of the four-year-old property.
Carrying the addresses of 3500 and 3550 S. Clark St., the two-nine-story National Gateway buildings sit within the 4.5 million-square-foot Potomac Yard mixed-use destination in Arlington’s Crystal City submarket. Meridian built the LEED Gold-certified office complex with the assistance of a $112 million construction loan secured in 2006. Back then, Corus Bank provided the funds; this time around, a national debt fund came through with financing.
“We had a tremendous amount of[lender] interest and a variety of different structures,” John Campanella, executive managing director with Cassidy Turley, told Commercial Property Executive.
Campanella cites National Gateway’s “great sponsorship” and designation as a Class A suburban office property as the main attractions. Washington, D.C., has long been a favorite market for investors and lenders alike, and despite the area’s drop in rankings–plummeting from the eighth position to number 22 on the top 20 list in PricewaterhouseCoopers and the Urban Land Institute’s Emerging Trends in Real Estate 2014 report–the capital markets will likely continue to keep the nation’s capital high on the radar. Outlying areas of the city may be the key.
“I believe that closing of National Gateway is a tipping point here in D.C.,” Campanella said. “I think that both the buyers and lenders will be more aggressive in the suburban locations moving into 2014.”