Monday Properties Closes $888M NoVa Refi

The financing includes a future funding facility that will provide significant capital to meet additional long-term strategic investments and support tenant needs.

1000 Wilson Blvd.
1000 Wilson Blvd.

The Washington, D.C., metro area’s “Twin Towers”—1000 Wilson Blvd. and 1100 Wilson Blvd.—are part of Monday Properties’ $888 million refinancing of a nine-building, 2.6 million-square-foot portfolio. All assets are located in Rosslyn, Va.

Other buildings in the portfolio owned by Monday Properties include 1401 Wilson Blvd., 1200 Wilson Blvd., 1101 Wilson Blvd., 1501 Wilson Blvd., 1515 Wilson Blvd., and 1812 North Moore. In early February, Nestle USA announced it was moving its U.S. headquarters from Glendale, Calif. to 1812 North Moore and bringing 750 jobs to the region.

The New York City-based real estate investment firm said the financing includes a future capital and leasing funding facility that will provide significant capital to meet additional long-term strategic investments and support the needs of future tenants in the Rosslyn buildings.

“The refinancing is an important milestone for the firm as it provides us with incredible financial security and the necessary capital to help us strategically and thoughtfully enhance our properties so they continue to perform at the highest levels,” Anthony Westreich, Monday Properties founding managing partner, said in a prepared statement.

The Washington Business Journal reported that the financing was provided to Monday Properties and its partner Goldman Sachs by an undisclosed institutional investor. The partners have been seeking a refinancing package for several months partly to deal with debt that was part of a 2007 CMBS that is coming due this year. WBJ noted the package retired more than $700 million in expiring debt.

1100 Wilson Blvd.
1100 Wilson Blvd.

The debt that was refinanced included a $310 million CMBS loan that encumbered properties including 1100 Wilson Blvd., 1101 Wilson Blvd. and 1000 Wilson Blvd., according to Yardi Matrix data. The CBMS loan was placed May 21, 2007, in a pool named LB Commercial Trust 2007-C3 and was assumed by Goldman Sachs Asset Management in November 2011, when it acquired the portfolio from Lehman Brothers. The Master Servicer was KeyCorp Real Estate Capital Markets Inc. and the special servicer was Midland Loan Services Inc. The interest-only note carried a rate of 5.831 percent with debt service payments of $1.5 million per month through July 11 of this year, when the remaining principal was due, Yardi Matrix reported. The previous debt also included a $257.6 million loan with a term of 10.17 years that was originated in May 2007 by Barclays as part of the portfolio transaction that had an interest rate of 6 percent per annum and also was set to expire in July.

“Working alongside our lenders, Monday Properties takes great pride in this refinancing. Not only will the capital further bolster our leasing efforts moving forward, but it reinforces our commitment to the portfolio and Rosslyn’s expanding real estate market,” Tim Helmig, a managing partner at Monday Properties, said in a prepared statement.

Monday Properties said it has closed on nearly 650,000 square feet of leases in Rosslyn, including the Nestle deal, in the past 18 months. The firm said corporations are attracted to Rosslyn’s proximity to the Washington, D.C., core and to major transportation hubs. The company’s increased leasing activity in Rosslyn goes back even further to August 2014 when Monday Properties signed a lease with Capital News Co., parent company of Politico, a political news organization, which agreed to lease 72,000 square feet at 1000 Wilson Blvd., moving from the other “twin”, 1100 Wilson Blvd. The “twin towers” are among the region’s tallest commercial buildings and offer more than 1 million square feet, including retail and restaurant space.