JLL Secures $112M in Non-Recourse Financing for Office Complex in Suburban DC

With the assistance of Jones Lang LaSalle's Capital Markets division, the California State Teachers Retirement System has landed $112 million in financing for Lincoln Place, a 503,800-square-foot office complex in Arlington, Va.

With the assistance of Jones Lang LaSalle’s Capital Markets division, the California State Teachers Retirement System has landed $112 million in financing for Lincoln Place, a 503,800-square-foot office complex in Arlington, Va.  SunTrust Banks Inc. provided the funds for the suburban Washington, D.C., property, which is fully leased to the U.S. Drug Enforcement Agency.

“There was a strong showing of interest from a variety of lenders, especially from banks and life companies,” Wes Boatwright, managing director of JLL’s Capitals Markets Group told Commercial Property Executive. 

SunTrust’s non-recourse financing for Lincoln Place came in the form of a 10-year, floating rate loan. “The transaction is a perfect example of how banks have modified their risk profiles and are now providing longer term loans to high-quality sponsors with well-located, Class A assets,” Boatwright said.

CalSTRS has owned Lincoln Place since 1999, when the pension fund acquired the property for $156 million. Consisting of two 12-story towers, the complex made its debut in 1988 with the addresses of 600 and 700 Army Navy Dr., and has been home to the DEA ever since. The federal government agency recently renewed its lease, as it has done every five years since moving into the buildings.

There’s nothing like a Class A property with a 100 percent occupancy level to seize the attention of the lending community. Lincoln Place ticks those boxes and then some. “Good assets with solid income streams and good credit borrowers will have no trouble attracting financing from life insurers and banks eager to choose from the pick of the litter,” PwC and the Urban Land Institute predicted in their 2013 Emerging Trends in Real Estate report.