CBRE arranges $98.2 million in financing for Reston Center
- March 25, 2013
CBRE Capital Markets in Washington, D.C., announced Monday that it has arranged $98.2 million in debt financing for Reston Executive Center. The center consists of three Class A office buildings totaling 494,264 square feet located within the Reston Town Center.
CBRE said it worked exclusively on behalf of an entity controlled by The JBG Cos. (which was not disclosed) to arrange a five-year bridge loan through Wells Fargo Bank. The property is located on Sunset Hills Road.
The owner purchased the property in November 2012, when it was 77.5 percent leased. According to CBRE, the owner plans to implement a capital expenditure program and an aggressive leasing plan to increase occupancy during the next 12 to 18 months.
The property is the largest investment to date in JBG’s eighth opportunity fund, which closed in 2011 with $752 million of equity. In 2012, JBG closed over $2 billion in property financings, consisting of construction, bridge and permanent loans.
Reston Executive Center offered an opportunity for the owner to acquire the last parcel available for re-development within Reston Town Center. “The strength and attributes of the borrower combined with the health of the Reston Town Center, which has seen approximately 1.3 million square feet of leasing since 2010, resulted in very favorable financing terms. These terms will allow the owner to execute its capital expenditure and leasing plan while maintaining flexibility with respect to potential future redevelopment,” Joe Donato of CBRE’s Washington, D.C. Capital Markets team said in a statement.
The CBRE team representing the buyer included Vice Chairman Joe Donato and Vice President Matthew Williams.