JLL Arranges $42M Loan for DC Area Retail Center
Rio shopping center in Gaithersburg, MD will utilize the loan to undergo property improvements.
GAITHERSBURG, MD – JLL has arranged $42 million in senior financing for a portion of a 700,000-square-foot retail property in Gaithersburg, Maryland.
Located at 9811 Washingtonian Boulevard, the lifestyle-oriented property, Rio, serves as the area’s shopping, dining and entertainment destination and is currently 98% leased to a mix of retailers including Target, Dick’s Sporting Goods, Kohl’s Department Store, Barnes & Noble and various restaurants.
The retail center, located in the Washington DC suburb, will undergo significant property upgrades with the 12-year, fixed-rate senior loan placed by JLL.
The loan will be utilized to refinance an existing loan and complete a multi-million-dollar capital improvement plan. The plan will comprise garage repairs, building facade upgrades, a boardwalk expansion, new entertainment and programing spaces, an updated pedestrian bridge and the development of an outparcel building, which is pre-leased to True Food Kitchen.
The center is situated near Interstate 270 and Interstate 370 in an area that houses more than 145,318 residents within a three mile radius.
JLL worked to place the senior loan with MetLife Investment Management, on behalf of the borrower, Peterson Companies. The JLL Capital Markets team, led by senior director Chris Hew and director Evan Parker, represented the borrower. Co-brokerages services for the transaction were provided by Jones Lang LaSalle Americas Inc.
The transaction was secured by Holliday Fenoglio Fowler LP (HFF), prior to JLL acquiring the deal in July 2019.
A full-service global provider of capital solutions, JLL Capital Markets serves investors and occupiers with more than 3,7000 specialists worldwide, occupying offices in nearly 50 countries.
JLL serves as a professional services firm that focuses on real estate and investment management. The Fortune 500 company has an annual revenue of $16.3 billion with operations in more than 80 countries.
Peterson Companies is one of the largest privately-owned real estate development companies within the Washington DC region.