BETHESDA, MD-The owners of Bethesda Towers, a joint venture between Moore & Associates and a separate account managed by Urdang Capital Management, have refinanced an $87.2-million securitized loan on the 531,600-square-foot, three-building office complex. Replacing it is a $100-million, 10-year, fixed-rate term loan from John Hancock Life Insurance Co. The deal closed on Wednesday.
The property is leveraged between 60% to 65%, Stephen Durr, president of Moore & Associates, tells GlobeSt.com. “Neither loan--the current one or the original--were designed to be maxed out at the highest leverage,” Durr says, adding that the value of the property has increased since it was acquired in 2005, in part due to a renovation. Upgrades were made to the building lobbies, restrooms and elevator lobbies.
When the owners went to the financing markets for the refi, they received a range of offers from big money banks to CMBS originators to life insurance companies, David Spoont, senior vice president of finance and dispositions for Urdang Capital, tells GlobeSt.com.
The offer from John Hancock is illustrative of the lifer insurer’s confidence in the Bethesda market and the building itself. “Generally the air gets a little thin over $50 million [per deal] for life insurance companies,” Spoont says. “Hancock is bullish on the Bethesda market and comfortable with this asset so they were confident in this level of loan dollars.”
Bethesda Towers is 95% occupied by a diverse roster of strong credit tenants, including the US Consumer Products Safety Commission, associations and financial service providers and technology firms.
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