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$76M Trade Illustrates Capital Market Turmoil

RICHMOND, VA-Despite the trophy status of the property, CBRE says placing the $50 million in financing was difficult.

By Erika Morphy | Updated on January 09, 2008

(Read more on the debt and equity markets.)

RICHMOND, VA-Sun Trust Mid Atlantic headquarters, a three-building 618,000-sf class A office complex. recently traded hands for $75.6 million. Parmenter Realty Partners acquired the property in its Parmenter Realty Fund III.

By all commercial real estate metrics, the property was a good trade for Parmenter; the complex is currently 80% occupied with SunTrust occupying 54% of the space. In-place rents are well below current market rates, giving Parmenter leasing upside opportunities when the leases roll over. Still, though, CBRE Capital Markets, which arranged the $50 million in acquisition financing, found it difficult to place the loan.

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