X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

INDIANAPOLIS-Two recently formed joint ventures of Duke Realty Corp. and Eaton Vance have secured $334.5 million in refinancing for 28 office properties in three Virginia towns. Quantico Real Estate LLC and Lafayette Real Estate LLC were able to get two 10-year, fixed-rate loans with JP Morgan Capital Inc. for two office portfolios owned by Duke. The 28 properties total 1.8 million sf and are in Alexandria, Chantilly and Sterling, VA.

Located within Mark Center in Alexandria, the Lafayette Portfolio has nine buildings that are 92.4% occupied. The Quantico Portfolio, which is 99.4% occupied, includes 14 buildings that are in Chantilly and Sterling. Senior managing director David Keller and director Jon Wood of Holliday Fenoglio Fowler’s Indianapolis office, and senior managing directors Bill Asbill and Bob Donhauser of HFF’s Washington DC office, arranged the loans.

Keller tells GlobeSt.com that the 80% leveraged financings are interest-only throughout the entire term, and were made to finance the creation of the Duke and Eaton Vance joint ventures. “Duke bought the properties using cash and bank lines of credit,” Keller says. “The joint ventures were created in order to finance the continued ownership of the assets.” The funds used in the original purchase were repatriated, he says. The original deal, which closed in March 2006, was an $855-million Duke purchase of 32 office, industrial and land properties from the Alexandria, VA-based Mark Winkler Co.

The recent loan is a good one for the HFF office, Keller says, as there was significant interest in this portfolio, “especially given the high quality location of the assets. Washington, DC is a very desirable investment market.” The properties included Liberty Center II, Mark Center I and 1701 N. Beauregard. Most of the tenants are government contractors, as the properties are near the Pentagon, says Asbill.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.