PHILLIPS REALTY CAPITAL ARRANGES $2OO MILLION FROM TH REAL ESTATE FOR LERNER’S 1775 TYSONS BOULEVARD TROPHY OFFICE IN TYSONS II
Bethesda, MD, June 19, 2017 – Phillips Realty Capital announced that a $200,000,000 transaction on behalf of Lerner Enterprises has closed and funded. Permanent financing for 1775 Tysons Boulevard, the world-class 17-story office tower in Tysons, Virginia, was provided by TH Real Estate, the real estate investment management arm of TIAA (Teachers Insurance and Annuity Association of America). The financing was structured by John R. Sieber, Jr., CMB, a Principal at Phillips Realty Capital, which has a correspondent lender relationship with TIAA-CREF.
“Phillips has placed several TIAA loans on our behalf and we knew they had the experience to structure the financing for this asset,” said Robert K. Tanenbaum a Principal of Lerner Enterprises. “Phillips has once again demonstrated it has the team to ensure excellent underwriting, pricing, and execution.”
1775 Tysons Boulevard (1775Tysons.com) is a 476,000 square foot, 17-story trophy office tower located in the heart of Tysons, Virginia. Lerner’s newest building in the Tysons II master plan, 1775 Tysons Boulevard is the first office building in Tysons to achieve LEED Platinum Certification. One block from the Tysons Corner Metro Station, the building features a state-of-the-art fitness center, flexible tenant conference center, both indoor and outdoor social areas and onsite dining at Fogo de Chão and Atrium Café’. World-class corporations have located in 1775 Tysons Boulevard, including EY, DXC Technology and WeWork.
“This transaction is unique in that we were able to lock in a long-term interest rate before building occupancy was stabilized,” explained Sieber. “Insurance companies have been exceedingly careful to minimize risk in the suburban office sector, so this structuring was only possible given the superior quality of both the sponsor and its asset.”
Copeland Cherry, Director of Mortgage investments at TH Real Estate said, “Real estate debt is a key focus for TH Real Estate given current demand from TIAA and our other institutional clients. We’ve worked successfully with Lerner developments in the past, and 1775 Tysons Boulevard is a high-quality asset that presented an investment opportunity aligned with our risk and return objectives.”
About Phillips Realty Capital
Phillips Realty Capital is a leader in Washington, D.C. commercial real estate finance, structuring approximately $1.2 billion in debt and equity transactions a year and servicing a $2.4 billion loan portfolio on behalf of 25 institutional investors. Established in 1933, Phillips has a proven track record of collaborating with premier property owners, lenders, and investors to structure the most competitive transactions available in the market. With offices in Bethesda, Richmond and Charlottesville, dedicated teams of experts deliver reliable financial analysis, precise valuations, and deep knowledge of capital markets to engineer the proper mix of capital to meet each client’s needs. Read more at www.phillipsrealtycapital.com.
About TH Real Estate
TH Real Estate, an investment affiliate of Nuveen (the investment management arm of TIAA), is one of the largest real estate investment managers in the world with c.$99.1bn in AUM. Managing a suite of nearly 80 funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, we provide access to every aspect of real estate investing. With offices in 20 cities throughout the US, Europe and Asia-Pacific, over 500 professionals and 80 years of investing experience, the platform offers impressive local expertise coupled with a sophisticated global perspective. Our investment, asset management and corporate strategies grow from a deep understanding of the structural trends that we believe will shape the future of real estate and responsible investing beyond market cycles. This ‘Tomorrow’s World’ approach sits at the core of our investment process and business operations, informing our long-term view of real estate investments for the enduring benefit of both clients and society. Read more about TH Real Estate.
About Tysons II
Tysons II (Tysons2.com) is a Lerner master-planned development, comprised of quality office towers, luxury retail, concept dining, hotel and residential towers, 500 feet from the Tysons Corner Metro Station. Within the 117 acre development are Tysons Galleria (an 800,000 square foot luxury shopping destination featuring Neiman Marcus, Saks Fifth Avenue, dozens of boutique shops and numerous destination restaurants), 1600 Tysons Boulevard (a 305,000 square foot LEED® Silver office tower), 1650 Tysons Boulevard (a 395,000 square foot office tower), 1750 Tysons Boulevard (a 405,000 square foot office tower), 1775 Tysons Boulevard (a 476,000 square foot office tower designed for LEED® Platinum), 1800 Tysons Boulevard (a 320,000 square foot office tower) and Lillian Court at Tysons II (a 286 unit award-winning luxury condominium project). All of these projects were originally developed by Lerner. Also within Tysons II is The Ritz-Carlton • Tysons, which was previously named one of the Top 50 Hotels in the United States by Condé Nast Traveler Readers’ Choice Awards and offers elegant accommodations and superior personal service.