(For more retail coverage, click GlobeSt.com/RETAIL.)
WASHINGTON, DC-Anecdotal evidence that Washington, DC area developers and investors are seeking to lock in rates continues to pile up. Two projects that recently completed refinancing include the Crowne Plaza Hotel & Conference Center near Washington Dulles National Airport in Herndon, VA for $30 million. Also in Herndon, Kohl's Department Store and a BB&T Bank secured $17.4 million in refinancing.
The Washington, DC office of Holliday Fenoglio Fowler, LP arranged both transactions, which closed in July and June, respectively, HFF managing director Mark Remington tells GlobeSt.com. "Washington, DC remains extremely competitive," he says. "It is a market where a lot of capital wants to go."
The Crowne Plaza property, located at 2200 Centreville Rd., originally was a Days Inn that was reflagged as a Crowne Plaza during the loan closing process. Working on behalf of Dulles Hotel Limited LC, Remington placed a 10-year, 6.13% fixed-rate securitized loan with JP Morgan Mortgage Capital. The loan, to be serviced by HFF, has a five-year interest-only period followed by a 30-year amortization schedule. Loan proceeds were used to refinance an existing loan plus costs of conversion to Crowne Plaza standards.
For the Kohl's transaction, Remington worked on behalf of Rocks Dulles, LC to secure the 10-year, 6.18% fixed-rate securitized loan through UBS Investment Bank. The property, located at 2100 Centerville Rd., consists of a 108,650-sf department store and a 7,650-sf pad site that will be occupied by BB&T Bank, which is relocating there. Both Kohl's and BB&T Bank are long-term tenants and have leases that run through 2020 and 2025, respectively.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
