ARLINGTON, VA-LaSalle Investment Management has secured a long-term, fixed-rate loan for One Virginia Square, a 116,077-square-foot office building it acquired here at the end of 2011. The loan, provided by an unnamed life company, was for approximately $31 million, Cassidy Turley’s John Campanella tells GlobeSt.com. Campanella and colleague Paul T. Spellman III arranged the financing.
Like the original acquisition, the decision to underwrite the permanent financing was a no-brainer. One Virginia Square, located at 3601 Wilson Blvd. in the Rosslyn-Ballston Corridor, is fully occupied by a defense contractor and is located next to the Virginia Square Metro station. System Planning Corp. has leased the building through August 2021.
“There was a good degree of competition for this loan,” Campanella says. “It has a solid sponsor and solid tenant so there was a lot of interest from the lending community.” Also, he adds, it was a low-levered transaction.
Campanella declined to discuss specifics about the loan other than to note that it was just as competitive as anything that a building in the District’s CBD or Downtown could have secured. “Virginia has always received premium pricing relative to the CBD but that has changed. Now lenders are pricing equally for both submarkets,” he says.
The shift is a testament to the ultra-low vacancy rates (and tight supply) in Rosslyn and the tight supply. Also, Campanella adds, “investors have come to view this submarket differently.”
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