JBG Reels in Refi for Suburban DC Office Building
- Jan 22, 2015
The JBG Cos. has landed $103 million in refinancing for 7200 Wisconsin Ave., a 275,000-square-foot office property in bustling downtown Bethesda, just a stone’s throw from Washington, D.C., proper.
With the assistance of commercial real estate and capital markets services provider HFF, JBG obtained a floating-rate, four-year loan with an optional one-year extension from SunTrust Bank.
SunTrust was just one of many lenders eager to provide JBG with funds for the Class A office building, which includes 20,000 square feet of retail and a 7,000-square-foot landscaped plaza.
“There was a tremendous response, not just from banks, but from a wide array of lenders,” Sue Carras, senior managing director with HFF, told Commercial Property Executive.
The sponsorship served as a magnet–JBG has been developing and acquiring real estate in metropolitan Washington, D.C. since 1960–as did the 12-story property itself.
“It is a highly regarded asset in such a strong submarket and a perfect location,” Carras added.
Additionally, there’s the draw of the tenant roster, which includes law firm Edens, Linowes & Blocher, Singapore Economic Development and biomass fuels processor Enviva, to name a few.
JBG plans to utilize the remaining proceeds from the refinancing for tenant and capital improvements and the expansion of the property’s street-level retail space. The real estate company has owned 7200 Wisconsin since 2008, when it acquired the asset unencumbered for $135 million. HFF played a role in that transaction as well, representing the seller.