(To read more on the debt and equity markets, click here.)
ARLINGTON, VA-A group of TIC investors arranged a $92.7-million financing for the ownership interest in Sequoia Plaza, a three-building office complex totaling 370,639 sf here, from USAA. Some of the TIC investors--entities controlled by Foulger Pratt Companies, Okland Construction, and Reedy Creek Investments--had traded into the Sequoia Plaza with proceeds from the sale of Republic Place, a Downtown Washington, DC office building, according to Holliday Fenoglio Fowler, LP which arranged the financing.
HFF senior managing directors Bill Asbill and Bob Donhauser, and director Cary Abod worked exclusively on behalf of the TIC investors. Sequoia Plaza is located at 2100, 2110 and 2120 Washington Blvd. in Arlington.
The 10-year, 6.17% fixed-rate interest-only loan was funded by conduit lender JP Morgan Mortgage Capital and is 80% leveraged. The property is currently 94.6% occupied by tenants including Northrop Grumman, Maden Tech Consulting and Canon, USA.
There was heavy competition for the transaction, Asbill tells GlobeSt.com. "JP Morgan won it, but a couple of other lenders came very close." The transaction, which closed at the end of June, priced at market rates at that time. Since then, the Treasury rate has moved up by five to 10 basis points.
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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.
