NGKF Capital Markets announced that it has been retained exclusively to sell a defaulted loan secured by Landbay C-West-an exceptional, zoned commercial development office site-located in Potomac Yard, located in the Crystal City submarket of Arlington, Virginia. This site represents one of the last remaining undeveloped office parcels in the Crystal City submarket.
The loan comprises two pari passu first mortgage notes and the entire secured debt on the property. The notes matured in December 2009, with an aggregate unpaid principal balance (UPB) of approximately $26 million. A letter of default was issued thereafter. The total debt obligations, including protective advances, accrued interest, default interest, late fees and other lender costs substantially exceed the UPB. The lenders have not pursued any of their legal remedies at this juncture.
This site represents one of two remaining office development opportunities in the Potomac Yard area. It is a 2.3-acre development parcel, approved for 587,441 square feet of Class A office, with ground floor retail. Designed as a high density town center, Potomac Yard features six- to 12-story residential and office buildings, linked by extensive public parks and active recreation spaces. Potomac Yard plans to include 2.5 million square feet of Class A office space, 1600 luxury residential units, 625 hotel rooms and 225,000 square feet of retail shops. Nearby retail amenities include a Harris Teeter Grocer and LA Fitness. The community is less than a mile from the Crystal City Metro Rail station and is served by Metroway, a rapid bus service linking Metro stations in Arlington and Alexandria. It is also less than two miles from Ronald Reagan National Airport. Office tenants in Potomac Yard include a mixture of Federal government agencies and private sector firms.
Throughout Northern Virginia and particularly in Crystal City, demand for Class A office space significantly outpaces the rest of the market with decreasing vacancy and higher net absorption. Class A asking rents in Crystal City are $40.68 per square foot, the fourth highest of the 24 submarkets in Northern Virginia.
Stuart Salins, executive managing director at NGKF Capital Markets, and Lisa Benjamin, senior managing director at NGKF, are the exclusive agents marketing the loan. According to Salins, it is anticipated that the notes will be sold at a significant discount to the UPB and market values based on recent land sales and office comps.
Indicative bids are expected to be called on November 23 with a closing expected by mid to late December.
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 12,800 professionals operate from more than 370 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.