a lot of development in Reston.
RESTON, VA-A hotel refinancing and a multifamily development groundbreaking have made for a busy week for the Reston submarket—and perhaps augur more to come as the opening date for the Reston metro station gets closer and closer.
In one transaction, RBS Citizens Bank provided $33 million in permanent financing for the Sheraton Reston Hotel, owned by a JBG Cos. entity. The 301-key hotel has 23,000 square feet of meeting space and recently decided to undergo a renovation. CBRE‘s Joe Donato and Matt Williams represented the borrower in the transaction.
In another, separate transaction, Renaissance Centro broke ground on Parc Reston, a 360-unit multifamily project with two penthouse levels. Site work for Parc Reston began in September 2012. The units will be available for leasing in the summer of 2014. The Parc Reston will be located close to the new Silver Line Metro station, which is opening next year.
The metro, not surprisingly, is driving a lot of activity in the submarket—including the Sheraton financing, CBRE’s Donato tells GlobeSt.com. “JBG and other developers realize the long-term value of Reston, especially now with the metro coming online.” Reston Heights is another project that is driving development in the submarket; indeed, the Sheraton is located in the middle of the development and its owners decided to embark on the upgrades in order to take advantage of the traffic that the 25-acre mixed-use project will generate.
Currently there are two hotels in Reston Heights, two office buildings and a residential condominium. Additional development calls for 250,000 square feet of office, 145,000 square feet of retail, and 500 residential units.