RESTON, VA-Renaissance Centro secured an $85 million construction permanent loan from Capital One to finance development of its planned multifamily property, Parc Reston, GlobeSt.com has learned exclusively. Cassidy Turley helped secure the financing along with the law firm of Grossberg, Yochelson, Fox & Beyda, LLP. Specifically, the Cassidy Turley team of Christian Miles, Philip Mudd, Bradley Geiger, David Webb and Jamie Butler worked on the transaction. However Mudd tells GlobeSt.com that the team made free use of the larger Cassidy Turley platform to close the deal. “We had leasing agents, for example, talk to lenders about why people would want to live in the Reston market.”
The 360-unit Parc Reston consists of two 14-story buildings and will deliver in 18 months.
The term of the loan is 8-years at what Mudd describes as “a very attractive interest rate” which he declined to name. In addition, he says, “we were able to implement some hedging strategies to fix the rate for a period of time.”
What is most unusual, though, about the financing is that it comes from a bank and not a life insurance company. Life companies competed heavily for the transaction, Mudd reports, enamored by the strength of the sponsor to say nothing of the project’s location of across the street from Reston Town Center and close to the Silver Line metro stop when it opens in 2014. “At the end of the day it was Capital One that stepped up – their deal replicated what the insurance companies offered and the rate was even better than what they were offering.”
Indeed, Capital One’s participation illustrates a trend that Mudd and his colleagues pointed to as they wrapped up their 2012 deals: namely, that finance providers are blurring traditional lines of demarcation in order to better compete for top-ticket deals. Life insurance companies, for example, are targeting construction finance, while banks are moving into territory once held exclusively by life and CMBS providers.