The arrangement consists of $168 million in first mortgage funds, plus the addition of a pari passu institutional equity partner. "We provided 96% of the financing for our client," Carlton Advisory senior vice president Michael J. Campbell explains to GlobeSt.com. "The client put in $7 million of equity, for a total acquisition cost of $175 million."
Located on four acres in the city's Twinbrook area--known as the First Life Sciences Center because it is home to a half million sf of Federal Drug Administration and National Institutes of health offices--the Parklawn Building is the largest office facility in Montgomery County. The 18-story structure was developed over three decades ago, and is leased to maximum capacity by the US General Services Administration for offices of the US Department of Health and Human Services. According to Montgomery County records, Parklawn has a 2004 assessed value of $98 million, and its seller is Parklawn Joint Venture.
What made the property a solid investment in Carlton Advisory's eyes, is the fact that that it has a solid long-term lease. "But what was compelling about the deal is what we were able to structure for our client," Campbell notes. "They were able to buy a $175 million building for $7 million."
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