Cassidy Turley Secures $150M in Acquisition Financing for DC-Area Office Complex
- Feb 28, 2013
Cassidy Turley secured the financing, in the form of a $150 million loan from a commercial bank, for the recent sale of the three-building, 688,700-square-foot Air Rights Center in downtown Bethesda, Md., the company announced Wednesday. The announcement puts a financial dimension on the sale; the price remained undisclosed when the sale was initially reported in January.
The buyer was a joint venture of MidAtlantic Realty Partners L.L.C., of Washington, D.C., and Rockpoint Group L.L.C., of Boston, and the seller was TIAA-CREF.
The property is at Wisconsin and Montgomery avenues, one block from the Bethesda station on the Washington Metro’s Red Line.
The Air Rights Center consists of the 10-story, 110,800-square-foot East Tower, built in 1964; the 14-story, 218,500-square-foot West Tower, completed in 1976; and the 12-story, 380,200-square-foot North Tower, built in 1980. The towers are connected on the first floor by a retail promenade of about 55,000 square feet, and the complex also includes parking for 1,227 vehicles.
The center is currently 93 percent leased to a diverse tenant base with staggered lease rollover, according to Cassidy Turley, and is managed and leased by Jones Lang LaSalle.
Cassidy Turley’s John Campanella, executive managing director, and Paul Spellman, vice president, represented the purchasers in securing the acquisition financing.
“In the D.C. region, we continue to see aggressive bank pricing for quality, well-located assets with strong sponsorship,” Campanella said in the release. “This portion of Bethesda has emerged as a truly urban, 24/7 live-work-play environment with numerous upscale amenities – all features that are highly attractive to lenders, investor, tenants and area residents.”
The Washington Business Journal reported last month that the purchasers plan “a substantial makeover” of the center. The complex reportedly also includes a development site with an already-approved plan for a further 150,000 square feet of office space.