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HAMPTON, VA-A 559,600-sf office building in the Peninsula region will be submitted to an upgrade program now that a $45.3-million refinancing deal has closed. The funds will also be directed toward tenant improvements and leasing commissions.
With the assistance of Jason Roach of GMAC Commercial Mortgage Corp., borrower NetCenter Partners LLC secured an interim floating-rate loan for the property in the form of a $35.6-million initial cash sum and $9.7 million in periodic advances. NetCenter carries the address of 5200 Mercury Blvd. and sits on a nearly 39-acre parcel just blocks from the border of Newport News.
The property was originally developed in 1974 and served as a regional shopping center, the Newmarket Fair Mall, before being converted into a high-tech business property via a $20-million redevelopment endeavor spearheaded by NetCenter Partners. NetCenter began the conversion project shortly after having acquired the property in 2000. Today the NetCenter is known as the largest single office structure in the Metropolitan Hampton market and is presently leased to 70% capacity by such tenants as AMSEC, which provides architecture and engineering services to the US Navy and maritime industry, Verizon and Northrop Grumman, which leased more than 100,000 sf in 2004 for a 10-year term.
"GMACCM offered the most flexibility and was willing to work with the borrower under unique circumstances, as the subject property represents a continued renovation of a regional mall into an office/tech center," Roach explains. "With the property currently 70% occupied, GMACCM proposed a three-year interim loan. NetCenter is a landmark property within the Hampton area of Virginia and is known as a successful turnaround of a defunct regional mall into a unique option for large office users typically associated with the area's military-based local economy."
The borrower will implement its capital expenditures plan beginning next year and will continue the project through 2007. The endeavor will complete NetCenter's transformation into a leading office tech center with a negligible amount of retail space for ancillary uses, a spokesperson for GMACCM's Washington, DC loan origination office tells GlobeSt.com.
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