Prudential Mortgage Loans Clarendon Center $125M

ARLINGTON, VA-Bethesda, MD-based REIT Saul Centers has secured permanent financing for its locally based mixed-use development, Clarendon Center. Prudential Mortgage Capital Co. is providing a 15-year, $125-million loan to the company to replace the construction financing on the project. There is also a 25-year amortization to the term.

There was a lot of competition for the project, Bryan McDonnell, a principal with Prudential Mortgage Capital tells GlobeSt.com. “Other lenders wanted it for the same reason we did--it is a great project with great sponsorship and transit-oriented.” In particular for this submarket, he says, it can be difficult to put together a combination of office, retail and multifamily and have it come together well. “Saul was thoughtful in its approach,” McDonnell says. “There are few projects in the DC area that have this combination of attributes.”  A few months after it has delivered, the rental and retail component is already leased and the office component is more than 50% taken, he says.

The project is located at 3000 Wilson Blvd. and 3030 Clarendon Blvd. It consists of two towers next to the Clarendon Metrorail station. The south tower houses 244 luxury apartments, 75,500 square feet of office and 29,500 square feet of ground floor retail. Trader Joe’s is the retail anchor. In the north tower there is 95,500 square feet of office and 13,000 square feet of ground floor retail.

Other lenders are stepping up to support local area transit projects. Private equity firm Capri Capital Partners has taken a $200 million majority stake in North Bethesda Market and Chicago-based private equity firm Walton Street Capital is providing financing to Liberty View, an 879,000-square-foot multi-phased office development near the Franconia-Springfield Metrorail station.