Citizens Bank Lends $69M for D.C. Suburb Purchase
Bethesda, Md.-based real estate investor Finmarc Management has scored an acquisition loan for its $96 million buy of a Northern Virginia office portfolio.
The $69 million in debt came from a group of lenders led by Citizens Bank, according to a press release from the Rhode Island-based bank. That means the financing covers 72 percent of the transaction. A spokesman for the bank declined to provide the terms of the loan and what other banks are involved in the deal.
“The team at Finmarc has in-depth experience with value-add real estate opportunities,” Tim Leon, Citizens Bank’s vice president of commercial real estate finance for the Mid-Atlantic region, said in prepared remarks. “We’re very happy to work with them and be able to help them achieve their strategic and financial goals.”
The eight office and industrial complexes are located in the suburbs of Washington, D.C., in Herndon, Va.; Manassas, Va.; Reston, Va.; and Merrifield, Va. The portfolio totals about 950,000 square feet across 26 buildings. The properties have a combined 76 percent occupancy rate with 70 tenants including the federal General Services Administration, the Fairfax County government and McClean Bible Church, according to Washington Business Journal, which reported the portfolio sale last month.
Finmarc Management purchased the complexes in March for $96 million from First Potomac Realty Trust, a Bethesda, Md.-based company going through structural changes, the Washington Business Journal reported. The real estate investment trust is planning to sell off $350 million of assets in the Mid-Atlantic starting with this transaction.
“Citizens Bank’s commercial real estate finance team has been a great partner on this major acquisition, as well as the several other transactions we have done together,” Marc Solomon, a partner of Finmarc Management, said in the Citizens Bank release.