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BETHESDA, MD-Capital Lease Funding has closed on its $81.5-million acquisition of 6116 Executive Blvd., a 207,000-sf office building located at the Executive Plaza business park in the North Bethesda submarket. In conjunction with the purchase, CapLease closed a $65.2-million 10-year mortgage financing package on the property.

Capital Lease acquired the fully occupied property from an affiliate of Guardian Realty, operating under the name of 6116 Associates LP and represented by Spaulding & Slye Colliers. In 2002 Guardian refinanced 6116 Executive Blvd. through a $53-million floating-rate mortgage loan. The building and the five-acre parcel it occupies, according to Montgomery County real estate records, have a total assessed value of $49.8 million for 2005.

Developed in 1989, 6116 Executive Blvd. is an eight-story, freestanding structure that also offers a three-level parking facility. The US government is the lead tenant, leasing about 86%–or approximately 179,000 sf–to house part of the National Institutes of Health’s National Cancer Institute.

“This class A building is a highly desirable building in a location where the National Institutes of Health has made a significant commitment,” CapLease CEO Paul McDowell says. “We expect the US government to be a tenant for years to come.” NIH, which maintains the remainder of its headquarters in 331,000 sf between two neighboring buildings at Executive Plaza, has already spent $10 million on improvements to the property. In its Executive Summary on 6116 Executive Blvd., Spaulding & Slye brokers note that, “given the constraints of supply that exist in North Bethesda, the quality of the asset, and the certainty of NIH’s renewal, the property will deliver positive yields with minimal risk for the foreseeable future.” Guardian Realty was unavailable for comment by deadline.

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