HFF Secures NoVa Office Building Refi
- Jan 10, 2019
True North Management Group has received a $32.2 million loan to refinance 7600 Leesburg Pike, a 219,000-square-foot office building in the Northern Virginia community of Tysons, in Fairfax County. HFF secured the three-year, floating-rate loan.
The property is convenient to interstates 495 and 66, which provide access to the entire Washington, D.C., metro area. The site is also barely a mile from Tysons Corner Center, the largest mall in Virginia and in the Baltimore-Washington metro.
The four-story Class B building was completed in 1986 and currently is about 74 percent occupied, according to Yardi Matrix. Available spaces range up to about 27,000 contiguous square feet.
The asset was updated in 2016 and will undergo further renovations to add on-site amenities in the coming year, including a deli and a fitness center. Loan proceeds were used to refinance the original acquisition loan and provide funds for the borrower to implement its business plan to lease up and stabilize 7600 Leesburg Pike. True North acquired the property from James Campbell Co. in December 2014 for $36 million, Yardi Matrix shows.
HFF’s debt placement team included Dan McIntyre, Robert Carey and Drake Greer. Recently, another HFF team facilitated the sale of Millennium I, II and III, a three-building creative office campus in Conshohocken, Pa.
Positive and sturdy
The Northern Virginia office market had “a positive fourth quarter to end a sturdy year,” according to a fourth-quarter report from Newmark Knight Frank. Highlights included net absorption of 1.4 million square feet for the year, a record high for this cycle, an overall vacancy decline of 20 basis points to 19.2 percent and a bump in average overall asking rents of 1.9 percent, to $32.72 per square foot.
Specifically, in the Tysons Corner submarket, Class B space commands $31.18 per square foot. On a base all-class inventory of 28 million square feet, a further 580,400 square feet is under construction.
Image courtesy of HFF