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NGKF Capital Markets arranged $82.8 million in financing for International Place, which is owned by an affiliate of Beacon Capital Partners, LLC. The property is located at 1735 North Lynn Street in the heart of the Rosslyn submarket of Arlington, Virginia.
Funded by Morgan Stanley, the loan allowed for the repayment of the existing loan and provides funds to cover future tenant improvements and leasing commissions as the property is leased to stabilization. The loan is floating rate, and has a two-year initial term and three one-year extension options.
International Place is a 12-story, 292,799-square-foot office building situated at a gateway location within a 24-hour neighborhood. Surrounded by countless retail, cultural and entertainment amenities in both Virginia and Washington, D.C., the property also has an array of onsite amenities including a new fitness center, drop off dry cleaners, multiple quick service restaurants and garage parking.
Providing multi-modal means of transportation, International Place is a short walk into Georgetown across the Key Bridge and a one-block walk to the Rosslyn Metrorail Station (Orange, Blue, and Silver Lines), which is only two stops to downtown Washington, D.C. Additionally, the property is two miles to the Pentagon, minutes from Route 50, I-66, the George Washington Memorial Parkway and the Francis Scott Key Bridge, and less than five minutes to Georgetown, seven minutes to Washington, D.C.’s Central Business District, 10 minutes to Ronald Reagan National Airport, and 15 minutes to Capitol Hill.
“Historically, Rosslyn has been a top performing submarket in the Washington, D.C. region. However, the lingering market vacancy associated with the DoD’s implementation of BRAC (Base Realignment and Closure) and newly delivered spec office space has pushed vacancy levels well above historical averages. While the current vacancy rate can create a difficult financing environment, the long-term government tenancy, recent leasing activity and outstanding amenity base at the property, combined with a top-tier institutional owner, were compelling factors for lenders,” said Joe Donato, a vice chairman of NGKF Capital Markets.
The Washington, D.C.-based team of Mr. Donato, Maury Zanoff, Matt Williams and Jamie Leachman arranged the financing.
About Beacon Capital Partners
Since 1998, Beacon Capital Partners has sponsored eight investment vehicles representing over $11 billion of aggregate equity capital from various endowments, foundations, pension funds, and other institutional investors. Through its funds, Beacon currently manages a real estate portfolio totaling approximately 29 million square feet, with total projected costs of approximately $15 billion. Beacon focuses on office property investments in a select number of target markets. Beacon has a strong presence in the Washington, DC / Northern Virginia market with ownership of 11 office properties totaling 5.7 million square feet. For more information regarding Beacon Capital Partners, please refer to its website http://www.beaconcapital.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.