NGKF Capital Markets arranges $82.8 million in financing for International Place
Newmark Grubb Knight Frank (NGKF) Capital Markets arranged $82.8 million in financing for International Place, a 12-story, 292,799-square-foot office building in Arlington County. An affiliate of Boston-based Beacon Capital Partners LLC owns the property at 1735 North Lynn St. in Rosslyn.
Funded by Morgan Stanley, NGKF said the loan allowed for repayment of the existing loan and provides funds to cover future tenant improvements and leasing commissions as the property is leased to stabilization.
International Place is considered a gateway location within a 24-hour neighborhood. Surrounded by retail, cultural and entertainment amenities in both Virginia and Washington, D.C., the property has many onsite amenities including a fitness center, dry cleaners, quick-service restaurants and garage parking. It is a short walk into Georgetown across the Key Bridge and a one-block walk to the Rosslyn Metrorail Station.
“Historically, Rosslyn has been a top performing submarket in the Washington, D.C., region. However, the lingering market vacancy associated with the Department of Defense’s implementation of BRAC (Base Realignment and Closure) and newly delivered spec office space has pushed vacancy levels well above historical averages,” Joe Donato, vice chairman of NGKF Capital Markets, said in a statement.
“While the current vacancy rate can create a difficult financing environment, the long-term government tenancy, recent leasing activity and outstanding amenity base at the property, combined with a top-tier institutional owner, were compelling factors for lenders.”