The borrower relied on Kenneth Gentzel and Gary McGlynn of NorthMarq Capital Inc.'s Washington, DC Regional office to orchestrate the first mortgage permanent financing package, which was provided by a life insurance company. The financed class A complex is a two-part property that involves the one-year-old Kingstowne Building Q, which features a 69,000-sf movie theater and 20,000 sf of inline retail space, and Kingstowne Building K, a 150,000-sf office structure that is currently in the works adjacent to Building Q.
The six-story office structure will also have a three-level parking facility. Rising interest rates prompted the borrower to finance the property, McGlynn tells GlobeSt.com. "The borrower wanted to lock the rate in before the property was stabilized."
NorthMarq was able to facilitate the deal despite the fact that the retail structure is completely vacant--aside from the movie theater--and the office building is incomplete. McGlynn says that "the lender felt comfortable enough at this debt level to lock in the rate for 10 years."
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