Dealmaker: Phillips Realty Capital Secures $237M for Office Properties

Phillips Realty Capital, Bethesda, Md., secured $236.5 million for two Virginia office properties.

In Tysons Corner, Va., Phillips secured $200 million for Lerner Enterprises, secured by 17-story office tower 1775 Tysons Boulevard. Phillips Realty Capital Principal John Sieber Jr., CMB, structured the financing. TH Real Estate, the real estate investment management arm of TIAA, supplied the financing.

The 476,000-square-foot tower is Lerner’s newest building in the Tysons II master plan.

“This transaction is unique in that we were able to lock in a long-term interest rate before building occupancy was stabilized,” Sieber said. “Insurance companies have been exceedingly careful to minimize risk in the suburban office sector, so this structuring was only possible given the quality of both the sponsor and its asset.”

In Richmond, Va., Phillips Realty Capital Managing Director Charles DuBose secured $36.5 million for Reynolds Development to refinance the Altria Building at Reynolds Crossing.

Located in the Reynolds Crossing mixed-use development, the 222,000-square-foot Class B building was built in 1968 and renovated in 2007. A single credit tenant, Philip Morris USA, leases the entire building as its headquarters.