Northern Virginia Office Building Secures Extension on $90M CMBS Loan
By Andrew Coen December 6, 2024 10:43 am
reprints
Menlo Equities has sealed a three-year loan extension for its Fairway Park Drive office property just outside Fairfax, Va., Commercial Observer can first report.
Iron Hound Management’s Christopher Herron and Will Forbes negotiated the modification on behalf of the borrower to recapitalize the 367,349-square-foot Class A office asset in Falls Church, Va., to retain and attract new tenants. Wells Fargo (WFC) is the loan’s master servicer.
“The borrower was proactive well in advance of the maturity date, working with the lender to secure the necessary term and capital investment to best position the property going forward,” Herron said in a statement.
The $90 million commercial mortgage-backed securities (CMBS) loan had a maturity date of July 1, 2024, and transferred to special servicer Greystone prior to that.
The loan extension gives Menlo a new equity infusion to fund reserves, tenant improvements and leasing commissions to the property, which was built in 200. The extension also helps the borrower address near-term tenant rollover with a building that is currently 86 percent leased.
“The asset is in great shape and it just needs a little bit of time for the leasing markets to come back, which they already are,” said Max Sanford, a partner at Menlo Equities who focuses on acquisitions and asset management. “Between that and our commitment to the property and the money we have in reserve for leasing and then some upgrades, we’re excited to stay on and go forward.”
Menlo acquired the Northern Virginia office asset at 2941 Fairview Park Drive in 2020 for $97.59 million shortly after BAE Systems relocated its headquarters to the building with a lease for around 135,000 square feet that runs until 2031.
The building also has a lease with financial advisory firm Deloitte until Oct. 31, 2025, and cybersecurity firm Booze Allen Hamilton until July 31, 2026, according to Trepp. Sanford said the goal is to get both firms’ leases extended.
Andrew Coen can be reached at acoen@commercialobserver.com
