Normandy Real Estate Partners has borrowed a $140 million loan to refinance a 10-building office portfolio in northern Virginia and suburban Maryland from investment bank Morgan Stanley.
The funding from Morgan Stanley fully retires the original acquisition debt on the portfolio. Sources revealed that the loan from Morgan Stanley is for five years. Property services firm Cassidy Turley originated the loan on Normandy’s behalf.
Morristown, New Jersey-based real estate investment firm Normandy originally acquired the portfolio from Starco, the real estate arm of the US Army/Air Force Mutual Aid Association, in 2006 for $157 million. The firm made the acquisition on behalf of its first commingled fund, Normandy Real Estate Fund.
Gavin Evans, a principal at Normandy, said in a statement: “This financing fully retires the original acquisition debt on the portfolio and allows us to further build on our plan for the northern Virginia market.”
According to the statement, the 10-building portfolio, which totals 787,425 square feet, is stabilised by long-term leases with an extensive tenant base. Nine of the buildings are situated in northern Virginia in the submarkets of Chantilly, Fairfax, Reston and Alexandria, with six of those located in the Westfields International Corporate Center in Chantilly. One property is located in Columbia, Maryland.
Evans said that the firm has leased roughly 500,000 square feet throughout the portfolio over the past three years, bringing the occupancy to 93 percent.