Restrepo: The borrower secured good
terms since several lenders pursued
the deal.

WASHINGTON, DC-The American Urological Association has secured $12.6 million in refinancing for its 84,000-square foot build-to-suit headquarters located near the BWI airport. With the help of Jones Lang LaSalle, the association closed on $8.3 million in tax-exempt bonds and a $4.3-million taxable loan. The bonds and the loan were privately placed with SunTrust Bank. The Maryland Economic Development Corp. issued the bonds. JLL’s John Gibb and Patricia Restrepo represented the AUA in the transaction. Miles & Stockbridge served as the bond counsel and Arent Fox was the borrower’s counsel.

The association embarked on the construction project when it consolidated its Baltimore and Houston offices almost a decade ago. Staubach, now part of Jones Lang LaSalle, served as the financial advisor for the original financing and managed the construction. The refinancing attracted a great deal of lender interest and ultimately secured very strong terms, Restrepo says in a prepared statement. “The terms they achieved are not surprising considering the organization’s credit strength.”

The JLL team closed a similar financing package last month, securing $19.6 million in tax-exempt financing from TD Bank for a student housing project at Wesley Theological Seminary. It also refinanced $9.4 million in debt for the school.

Another recent deal in which tax-exempt bond financing was used was for Opportunities Towers, a 277-unit section-eight senior living property in Philadelphia. Red Stone structured and acquired $19 million of tax-exempt bonds, the proceeds of which will provide renovation and permanent financing for the project.

Further, Education Realty Trust recently broke ground on a $53.6-million third-party student-housing project on the Mansfield University campus in Mansfield, PA, after securing tax-exempt financing with the USDA and First Commonwealth Financial Corp., and Build NYC Resource Corp. approved approximately $37-million in tax-exempt financing earlier this year for four projects in New York City.