"In a time of significant tightening in the credit market, this unsecured loan speaks to the financial strength of our company," said Donald A. Miller, CEO of Piedmont, in a release. "This allows us obvious flexibility as we continue to manage and shape our capital structure and portfolio of properties for our investors."
One day before obtaining the term loan, Piedmont closed on an acquisition by drawing on its existing revolving line of credit, says Owens. The company gained 100% ownership interest in Rock Spring II LLC, an entity that owned Opus Center at Rock Spring Park II, a class A office building in suburban Washington, DC. Piedmont had acquired the adjoining Opus Center at Rock Spring Park I, owned by a sister entity, at the end of last year, and has now renamed the brand new, vacant buildings Piedmont Pointe I and II.
Both buildings, located on Rockledge Drive in Bethesda, MD, total 407,000 sf and include amenities like outdoor terrace areas, a fitness center and underground executive parking lot. Jones Lang LaSalle will handle market leasing opportunities for the eight-story properties.
"The acquisition of Piedemont I and II is a furthering of our strategy to increase our presence in our concentration markets--areas we feel there are better prospects for long-term value and growth like DC, Boston, Metropolitan New York, Northern New Jersey, Los Angeles and San Francisco," says Owens. "We will also continue to look at opportunistic markets like Atlanta and parts of Florida." The public, non-traded REIT, which specializes in class A office properties, claims ownership of more than 83 buildings that are 94% leased in 23 states.
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