The acquisition price, according to a source, was $15.5 million. The seller was an investment partnership. Rob Meeks of Next Realty Mid-Atlantic LCC represented East West Mortgage and Cassidy & Pinkard Colliers represented the seller. Michael Trauberman, managing director of Falls Church, VA-based Spence Hill Associates, arranged slightly more than $13.5 million in acquisition and permanent financing.
The buyer is a privately-held company--not to mention a residential mortgage lender--which meant, in this current economy, the financing was more difficult to arrange, Trauberman tells GlobeSt.com. "But they are a large and solid company with a commitment to the area."
The loan 80% LTV non-recourse was placed with Wachovia Bank, NA. It has a 10-year term, 10 years of interest-only payments, and a fixed interest rate of 5.87%.Trauberman says that the loan was processed within 48 days--including the holidays--and completed just before the recent rise in Treasury yields.
East West Mortgage, which is leasing space in another building in Tysons Corner, expects to occupy approximately 48,000 sf in its new building by year-end 2007. The remainder of the space will be leased to other tenants.
Trauberman says it was important to the company to remain in the submarket. Also, he says, East West Mortgage liked that the building is located close to a proposed metro stop.
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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.
