Trio of Lenders Provide $850M for Tysons Corner Center Refi
- Oct 07, 2013
Prudential Mortgage Capital Co., Northwestern Mutual and TIAA-CREF each chipped in $283.3 million, for a total $850 million, to refinance Tysons Corner Center in metro Washington, D.C., the lenders announced Friday.
The 1.9 million-square-foot super-regional mall in Tysons Corner, Va. is owned and operated by The Macerich Co. The 10.3-year loan carries a 4.10 percent interest rate.
“Tysons Corner is one of the most successful regional malls in the country. Its location in a dense and affluent suburb of metropolitan Washington, D.C. … made this an extremely attractive transaction for us,” Elizabeth Velazquez said in a release. Velazquez, a director with Prudential’s San Francisco office, led the transaction.
“This was a large, fast-moving, highly complex and heavily negotiated financing with three co-lenders who delivered the closing in less than 30 days,” Scott Kingsmore, senior vp/finance for Macerich said in the release.
As another factor encouraging the lenders, Velazquez referenced the expansion of Tysons Corner Center with the addition, now under way, of a three-building mixed-use development. (This expansion is not covered by the new loan.)
Tysons Corner Center, at the intersection of Chain Bridge Route 123 and the Capital Beltway/I-495, was completed in 1968 and underwent a 362,000-square-foot expansion soon after Macerich and the Alaska Permanent Fund Corp. acquired the center in 2005.
The current project, separate from the center but connected to it by a 55,000-square-foot pedestrian plaza, will comprise a 22-story Class A office tower; a 429-unit, 30-story apartment tower; and a 17-story hotel.
(Helping to drive this addition is the Tysons Corner station, now under way, that will be part of the Dulles Corridor Metrorail Project, a/k/a the Silver Line, an extension of the Washington Metro rapid transit system.)
Last December, as reported by Commercial Property Executive, Macerich announced the signing of Intelsat as the office tower’s anchor tenant. The satellite service provider will occupy 188,000 square feet under a 15-year lease.
And in May it was disclosed that Deloitte L.L.P. had leased three floors, totaling about 88,000 square feet, reportedly bringing Tysons Tower’s office space to 60 percent pre-leased.
The residential high-rise is being developed by Kettler, of McLean, Va., and the hotel, a Hyatt Regency, is being developed by Woodbine Development Corp., Dallas.