Suburban D.C. Property Refinanced for $43.5M
- Aug 10, 2010
Rosslyn Metro Center in Arlington, Va., has been refinanced to the tune of $43.5 million, according to the Washington, D.C. office of Holliday Fenoglio Fowler (HFF) L.P., which oversaw the deal. The property is a 407,300-square-foot, mixed-use building including 22 stories of retail and office space.
Even in metropolitan Washington, it’s a tough time for refinance, but deals like this are getting done if the conditions are right. “The property’s occupancy and its location in a relatively strong office market were deciding factors in getting the refinance done,” Bill Asbill, senior managing director at HFF, told CPE on Tuesday.
Working on behalf of Arlington, Va.-based Clover Cos., a development and management firm, HFF’s Asbill and senior managing directors Bob Donhauser and managing director Cary Abod placed the 10-year, fixed-rate loan with Prudential Mortgage Capital Co. The previous financing was scheduled to mature in Feb. 2013.
Currently Rosslyn Metro Center is 89 percent occupied. About 176,000 square feet of office space—about 43 percent of the property—is leased to the U.S. General Services Administration. It is also located on top of the Rosslyn Metro Station, which is about three miles west of downtown Washington. The property is owned by a private partnership.
The capital region is currently the office market to beat, with demand outpacing almost everywhere else in the country. During the first half of 2010, metropolitan Washington added about 43,000 office jobs, 16,000 of them federal government workers, according to the U.S. Census Bureau.
Washington’s Rosslyn/Courthouse submarket, where the Rosslyn Metro Center is located, is particularly strong, according to a recent analysis by Marcus & Millichap Real Estate Investment Services Inc. Office vacancies were 6.7 percent during the second quarter, down from 7.8 percent at the same time last year, the report noted.