$47M in Financing Arranged for Atrium at Rock Spring Park in Bethesda, MD
A joint venture comprised of affiliates of Meritage Properties LLC and GTIS Partners LP has secured a $47 million non-recourse floating rate facility for Atrium at Rock Spring Park, located at 10401 Fernwood Road in Bethesda, MD.
The Cushman & Wakefield Equity, Debt and Structured Finance team that brokered this transaction included Steven Kohn and Alex Hernandez, who worked with Cushman & Wakefield’s Washington, D.C. Capital Markets team of Steve Gichner, Eric Berkman and recent Equity, Debt and Structured Finance addition, Gideon Gil.
The facility was provided by a major domestic commercial bank.
The joint venture owners acquired the property in 2006 when it was approximately 66% leased. Since then, occupancy has increased to 100% with no near-term rollover and two-thirds of the tenancy secured by government credit.
As part of its repositioning strategy, Meritage completed the renovation of 57,000 square feet of first floor vacancy with the modernization of the common corridor and installation of a new window line on the east side of the space.
In addition to the prior owner’s improvements to the Property, including passenger elevator upgrades, a new fire alarm system, and the installation of a new roof, ownership has invested in additional base building capital improvements since 2007, including renovations of the main and first floor lobbies, HVAC system upgrades and a new base building chiller.
“The Atrium” is in Rock Spring Park at the intersection of Interstate 495, Interstate 270, and Democracy Boulevard. Building amenities include a private courtyard, high ceilings, raised floors, covered parking, double-height atrium lobby, renovated common areas, and a high-quality food concession.
10401 Fernwood also benefits from the amenities contained both within Rock Spring Park and in the surrounding neighborhood, including a newly landscaped park and water feature in the Property’s front yard.