The sale highlights Bethesda's ongoing growth and urbanization, but its financing underscores a newer trend: life insurance companies are making competitive offers for value-add offices that are not quite stabilized. In the Donohoe deal, the life company arranged the loan out of its general account as part of its relationship with Donohoe, Campanella said.

"New Buckets of Money"

But in other cases, similar acquisitions are being financed by new “buckets of money” as Campanella describes it, by life companies that are interested in targeting such assets.

“These are products that are competing with debt funds, although I wouldn't call them debt funds,” Campanella said. They are more akin to bridge loans but without much of the risk that bridge loans tend to assume. Bridge lite is one way to think of them, he said.

BETHESDA, MD--The Donohoe Cos. has acquired Hampden Square, a 12-story, 145,951-square foot office building at 4800 Montgomery Lane from American Realty Advisors. The building is currently 85% leased with five full-floor tenants. It is not clear what Donohoe Cos. paid for the building but it did secure a $49 million loan for its acquisition from a life insurance company.

Cushman & Wakefield's Bill Collins, Paul Collins, Drew Flood and Shaun Weinberg represented ARA in the sale of the building and C&W's John Campanella arranged the ten-year, fixed-rate loan on behalf of The Donohoe Cos.

Campanella told GlobeSt.com that Donohoe has big plans for the property and plans to capitalize on its proximity to a nearby future metro stop. Hampden Square is located at the intersection of Montgomery Lane and Woodmont Avenue, within one block of the Red Line's Bethesda Metro station and a planned Purple Line station.

The Donohoe Cos. did not return a call to GlobeSt.com in time for publication.

The sale highlights Bethesda's ongoing growth and urbanization, but its financing underscores a newer trend: life insurance companies are making competitive offers for value-add offices that are not quite stabilized. In the Donohoe deal, the life company arranged the loan out of its general account as part of its relationship with Donohoe, Campanella said.

"New Buckets of Money"

But in other cases, similar acquisitions are being financed by new “buckets of money” as Campanella describes it, by life companies that are interested in targeting such assets.

“These are products that are competing with debt funds, although I wouldn't call them debt funds,” Campanella said. They are more akin to bridge loans but without much of the risk that bridge loans tend to assume. Bridge lite is one way to think of them, he said.