NoVA Distribution Facility Lands $18M in Financing
- Aug 09, 2017
HFF secured $17.5 million in financing on behalf of ARCTRUST for the acquisition of a three-building distribution facility located in Fredericksburg, Va. The 487,897-square-foot asset is fully occupied by CVS Caremark Corp.
Situated on a 39.4-acre site at 500 Lansdowne Road, the CVS facility serves as one of the company’s 17 U.S. centers distributing to 377 CVS stores across Maryland, North Carolina, Virginia and the District of Columbia. The property benefits from close proximity to Interstate 95 and U.S Route 1. In July, a $202 million, 20-property Mid-Atlantic industrial portfolio also changed hands along the I-95 corridor.
Completed in 1985 and expanded in 1995, the asset consists of a main building housing a warehouse and offices, an aerosol storage facility and a truck repair facility. The property features 39-foot clear heights, 65 dock-high loading doors with one drive-in loading dock, mezzanine level, HVAC system, fire sprinkler system and adequate driveways, parking and loading areas.
Senior managing director Greg Nalbandian of HFF led the debt placement team and placed the 10-year fixed rate loan through Kansas City Life Insurance Co.
“We were able to identify an insurance company that understood the asset and met the client’s objectives by providing a 75-percent max LTV with a 10-year term and 30-year amortization,” said Nalbandian. “Kansas City Life Insurance Company also offered prepayment flexibility, which was a critical requirement of the sponsor.”
ARCTRUST specializes in the development, acquisition, financing and joint-venture of net lease properties located in Florida and in the New York to Washington, D.C. corridor.
Image courtesy of JLL