Wells Fargo Provides $152M CMBS Loan for Northern Virginia Office Tower
By Cathy Cunningham March 21, 2018 10:06 am
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CBRE has arranged $152 million in financing for Harbor Group International’s purchase of One Dulles Tower—a 403,622-square-foot, 13-story office building in Herndon, Va., the company announced last week.
Wells Fargo (WFC) provided the 10-year, interest-only fixed-rate CMBS loan. As a result of locking the index in January, Harbor was able to obtain a sub-4 percent interest rate for the loan term, according to information provided by CBRE.
Harbor Group purchased the property from Federal Capital Partners in early March, paying $226 million according to Commercial Property Executive. Prior to the acquisition, Federal Capital Partners completed an $11 million renovation of the building including a new lobby, a fitness center and a conference center.
CBRE Capital Markets’ Shawn Rosenthal and Sunny Somaiya negotiated the debt on the property, located at 13200 Woodland Park Road.
The building scored Amazon (AMZN) Web Services—Amazon’s cloud services division— as a new tenant in June 2017, as first reported by The Washington Business Journal.
“The high-profile credit tenant under a new long-term lease, strength of sponsorship and prime location in the Dulles Technology Corridor led to a highly competitive bidding war for this loan,” Rosenthal said in prepared remarks.
The Dulles Technology Corridor is a cluster of technology and defense companies located in Northern Virginia near Washington Dulles International Airport and dubbed “The Silicon Valley of the East” by The Atlantic.
Officials at Wells Fargo declined to comment.
