Dealmaker: JLL Arranges $147M in Three States

March 3, 2016

JLL, Chicago, secured $146.8 million for assets in Virginia, Maryland and New York.

JLL Managing Director Dustin Stolly, Senior Vice President Jonathan Paine, Vice President Aaron Niedermayer and Executive Vice President Mike Yavinsky secured $57.5 million for Lexington Realty Trust, New York, to purchase Gateway Plaza, a 330,000-square-foot office and retail property in Richmond, Va.

The 18-story property delivered last Summer. “New office product, owned by best-in-class sponsorship, continues to attract large swaths of low-cost and efficient debt capital,” Stolly said, noting that Gateway Plaza received a 15-year interest-only loan.

JLL also arranged $48.9 million for North Bethesda Place I & II in Bethesda, Md. Hines, Houston, purchased the two-building complex last month from JBG, Chevy Chase, Md.

Hines announced plans to renovate the buildings to accommodate accelerated demand for Class A transit-oriented office product in the close-in Washington, D.C. suburban markets. The financing from Santander Bank, Boston, includes future funding for tenant improvements and leasing commissions.

Yavinsky, JLL Executive Vice President Jon Goldstein and Managing Director Wes Boatwright led the debt-placement team.

“The project generated significant interest from lenders due to its exceptional sponsorship and prime location in the amenity-rich North Bethesda submarket,” Goldstein said. “The area is experiencing rapid redevelopment and transit-oriented growth, which is leading to increased tenant demand.”

In New York, JLL secured $40.4 million in acquisition and pre-development financing for 106 West 56th Street. A joint venture between Savanna, New York, and Atom Assets, Hong Kong, plans to develop a 26-story Class A office building on the site. United Overseas Bank Ltd, Singapore, provided the loan.

JLL Managing Director Kelly Gaines worked with Niedermayer on the transaction.

Niedermayer noted that the property will have outdoor terraces and Central Park views on the upper floors. “106 West 56th Street will cater to the types of tenants who seek boutique office space in Midtown, including hedge funds, family offices and high-net-worth individuals,” he said.