Sustainable Credit Partners has closed a $27,300,000 first mortgage loan secured by Dulles Station West, a 178,291-square-foot Class A office building in Herndon, Virginia. The Washington, D.C. office of Cushman & Wakefield arranged the financing on behalf of the sponsor. The sponsor is Spear Street Capital, a San Francisco based value-add office investor and fund manager.
The property is 83% leased. The loan is structured around a major tenant renewal, with tenant improvement and leasing costs funded as the building leases up.
Proceeds refinance the asset and support a capital program that includes an LED retrofit across tenant office areas and occupancy-based ventilation controls. Both measures cut electricity load in space that is already occupied and leased, which lowers operating costs without waiting on a repositioning.
"Suburban Washington office is being priced as a single story right now, and it is not one. An 83% leased Class A asset with a credible efficiency plan is a different risk than the headline suggests. That is the distinction we underwrite." Joe Stevens, CEO, Sustainable Credit Partners.
The sponsor is a San Francisco based national value-add office investor and fund manager.
GreenGen's assessment put the building at an ENERGY STAR score of 68, with identified improvements lifting it to 77.
SCP provides floating-rate bridge loans from $10 million to $100 million for mid-market commercial real estate nationwide, financing the property and the capital plan behind it in a single first mortgage.
