(Read more on the debt and equity markets.)
ROCKVILLE, MD-Perseus Realty LLC and Prudential Real Estate Investors have finalized construction financing for their $107-million, 350,000-sf, class A office project here on which the joint venture has just broken ground. Just before Thanksgiving, Perseus Realty Capital closed on an $82.5-million construction loan for the acquisition and development of Redland Corporate Center Phase II & III, for which it began prepping earlier this year when it acquired the 10-acre parcel for $12.5 million.
The lender is Corus Bank, a Chicago-based subsidiary of Corus Bankshares Inc. This is the second office loan Perseus has received from Corus, which is expanding beyond its traditional condo finance base.
The deal took an average time to place despite the difficulties in the capital markets, PRC VP Lindsay Stroud tells GlobeSt.com. "In this turbulent market it is becoming more difficult to find lenders to do these kinds of deals, even in primary and secondary markets. But we have a pretty deep list of lenders that are still active." Stroud declined to provide details about the financing other than the rate is Libor-based.
The two-building project will consist of one 210,240-sf, nine-story building, located at 530 Gaither Rd.; the second, at 520 Gaither Rd., will have 136,430 sf on six floors. Both buildings will meet the new General Services Administration setback and security requirements for Federal tenants and will be LEED certified.
There is also an existing 139,000-sf building on the site that is occupied by the US Department of Health and Human Services. Perseus is also developing a six-story structured parking garage.
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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.
