Natixis Provides $218M Loan for Virginia Office Complex
The property is 100 percent leased to the GSA
By Cathy Cunningham October 17, 2019 5:44 pm
reprints
Natixis Real Estate Capital has provided a $218 million loan for Patriots Park, a Class A office complex in Reston, Va., Commercial Observer has learned.
The 60-month, fixed-rate, interest-only loan is being securitized in the NCMS 2019-1776 CMBS deal. CCRE is co-lead manager on the single asset, single borrower transaction.
Proceeds will refinance $215 million in previous debt on the property, also provided by Natixis at the time of Hyundai Securities’ $321 million acquisition of the asset from Boston Properties in 2014. The previous round of financing had a seven-year term, was split into four notes and securitized in four separate securitizations.
Korean financial services provider KB Financial is the current sponsor, having acquired Hyundai Securities in 2016.
Patriots Park comprises three office buildings totaling 723,667 square feet that are 100 percent leased to the General Services Administration (GSA) under two leases. The lease on Patriots Park I and Patriots Park II expires in September 2032, while the lease on Patriots Park III ends in 2033.
Located within the Reston office submarket — in the middle of Northern Virginia’s technology corridor and 23 miles northwest of Washington, D.C. —each of the three buildings include a cafeteria, a convenience store and a fitness center. Patriots Park I and II were developed in 1986 and 1987 and renovated in 2012 and 2013. Patriots Park III was developed in 2006.
The property includes two five-story parking garages and a surface lot with 2,561 parking spaces. Additionally, there is 17,762 square feet of warehouse space that is leased by the GSA.
Previous owner Boston Properties continues to manage the sprawling, 22-acre campus.
In August, Natixis also provided a $220 million CMBS refi to RFR Holding and TriStar Capital for the Amazon Phase VII building at 400 Ninth Avenue North in Seattle’s South Lake Union neighborhood, as previously reported by CO.
Officials at Natixis and CCRE declined to comment.
