CBRE arranges $58.7 million in acquisition financing for Reston offices
- February 15, 2012
CBRE Capital Markets in Washington, D.C., has arranged a $58.7 million non-recourse loan for the acquisition and renovation of the Summit I & II office buildings in Reston.
CBRE worked on behalf of the JBG Cos. in putting together a five-year, non-recourse loan through KBS REIT II. Originally developed in 1986/1987, the adjacent, six-story office buildings contain about 288,000 rentable square feet.
Summit I, located at 2002 Edmund Halley Drive contains 141,000 square feet while Summit II, at 2000 Edmund Halley Dr., contains 147,000 square feet. CBRE said significant renovations are planned this year, including upgrades to HVAC systems and the building’s lobby and bathrooms.
The property on the Dulles Toll Road is south of Reston Town Center. It’s also adjacent to the future home of the Reston Town Center Metrorail station on Metrorail’s Silver Line extension.
“Although the property is vacant, given the strength of JBG’s track record we were able to arrange non-recourse financing to facilitate the acquisition and redevelopment of the property. Additionally, we were able to structure the funding of the loan in such a manner that will allow JBG to maximize their returns as their equity will be funded over the term of the loan rather than upfront.” Joe Donato of CBRE, said in a statement.
The JBG Cos., based in Chevy Chase, Md., has developed, owned or managed more than 30 million square feet of office space, 5.5 million square feet of retail space, 15,000 residential units and 15 hotel properties.