Monday Properties Obtains $206M Refi for 2 Office Assets

Monday Properties has obtained a $205.5 million refinancing package for two office assets in Arlington, Va., a Washington, D.C., submarket. Citi Real Estate Funding provided a $173 million loan for 1812 N. Moore, an almost 540,000-square-foot building, and a $32.5 million note for Shirlington Gateway, a 206,200-square-foot medical office property.

The two CMBS fixed-rate loans carry a five-year term. The owner developed the trophy office asset in 2013 and acquired the medical office building in 2018 for $40.8 million from American Counseling Association, according to CommercialEdge information.

Two office assets close to downtown D.C.

The LEED Platinum-certified tower at 1812 N. Moore St. features floorplates ranging between 9,291 and 23,392 square feet, 14 passenger elevators, some 480 parking spaces, fitness and wellness centers, meeting and event space, a conference center and lounge, along with some 11,000 square feet of retail space.

Previous financing for the Class A facility includes a $250 million loan originated in 2017, with up to $70 million pertaining to a future funding facility. The property is 90 percent leased, tenants including Nestlé USA—which signed a 206,000-square-foot lease in 2017—Oracle and AbleVets.

The 35-story high-rise is in the Rosslyn neighborhood, close to several retail options, including the Plaza East Office Building shopping mall. Downtown Washington, D.C., is within 4 miles.

The Shirlington Gateway medical office building came online in 1986 and underwent cosmetic renovations in 2007, CommercialEdge data shows. Amenities include a new lobby, an updated fitness center, a café and five passenger elevators.

The building is 93 percent leased, the tenant roster featuring Anderson Orthopedic Clinic, INOVA and Virginia Hospital Center.

The 12-story facility is at 2800 Shirlington Road, less than 6 miles from 1812 N. Moore and within 7 miles from downtown Washington, D.C.

D.C.’s office sector is showing resilience

Washington, D.C.’s office sector is regaining strength, leading nationally in terms of sales volume year-to-date as of February, according to a CommercialEdge office report. The market saw $429 million in assets changing hands. Additionally, the market’s vacancy rate clocked in at 16.1 percent during the same period, 180 basis points lower than the U.S. average.

In January, Affinius Capital refinanced The National Cancer Institute Headquarters Building, a 586,524-square-foot office property in Rockville, Md. Sumitomo Mitsui Banking Corp. and Industrial and Commercial Bank of China Ltd. originated the three-year loan.