HFF Secures Refi for 2 NoVa Office Assets
- Sep 30, 2016
By Keith Loria, Contributing Editor
Washington—HFF has arranged refinancing for 1400 Crystal Drive, a newly renovated, 308,898-square-foot trophy office building, and Jefferson Plaza, a 270,286-square-foot office building, both in the Crystal City submarket of Arlington, Va.
For the Crystal Drive property, HFF worked on behalf of an affiliate of Lowe Enterprises Investors to place the floating-rate loan with KKR Financial. Proceeds will be utilized to retire existing financing that HFF secured in 2013, and provide good news funding for lease-up.
“The borrower has signed leases with 11 tenants since completing the renovation, including seven different association groups and a host of private-sector businesses,” Cary Abod, HFF managing director, said in a prepared statement. “Tenants have elected to lease at 1400 Crystal for the features that make it the top building in Crystal City: best-in-class tenant build-outs, unrivaled views and the array of amenities.”
The 13-story office building was originally constructed in 1970 and renovated in 2013. The property offers 30-foot by 30-foot column spacing for open plan buildouts, and floor-to-ceiling glass providing expansive views of Washington, D.C., and the Potomac River. Amenities include a fitness center, rooftop terrace, conference center and a club room with flat screen TVs, a foosball table and numerous electronic games.
For the Jefferson Plaza property, which is located at 1401 S. Clark St., HFF worked on behalf of an affiliate of Lowe Enterprises Investors to place the floating-rate loan with Square Mile Capital. Loan proceeds will be used to retire existing financing that HFF secured in 2013, and provide good news funding for lease-up.
“As the Crystal City submarket continues to recover from BRAC and sequestration, Jefferson Plaza is positioned to benefit from increased leasing velocity,” Abod said. “Jefferson Plaza offers tenants first-class build-outs and best-in-class amenities at competitive rates.”
The building’s common areas were renovated in 2013 and 2016, and offer an amenity package including a fitness center, conference center and on-site café.
Both buildings are located in the heart of Crystal City, with direct access to the D.C. Metrorail system and are less than a half-mile from Ronald Reagan National Airport, 2 miles from the Pentagon, and less than 3 miles from downtown Washington, D.C.
According to Colliers International’s latest Northern Virginia office market report, the office-using sectors of the economy have been generating a large number of jobs, which should be generating new demand for office space. So far in 2016, 3,355 seasonally adjusted jobs have been created in office-using sectors of the economy.
Images courtesy of Yardi Matrix