PRC Secures $49,625,000 Acquisition Loan for Two Herndon Office Buildings

Bethesda, MD, January 16, 2020

A joint venture between Goodstone LLC and Waterfall Asset Management LLC announced that it secured $49,625,000 of debt financing from Bridge Investment Group to acquire and renovate Northridge I & II, two separate but contiguous properties that jointly offer 258, 452 square feet of office space in Herndon, Virginia adjacent to Amazon Web Service’s east coast hub. The acquisition loan structured by Phillips Realty Capital includes funding for 100% of Goodstone’s strategic modernization plans that combine the properties into one integrated campus with shared amenities and upgrades that will restore the buildings to “best-in-class” status. Timing of this transformative redevelopment will be concurrent with delivery of the proximate Innovation Center Metro mixed-use transit center.

“Our relationships with two different property sellers at this unique time and location presented a special set of circumstances we are acutely well positioned to leverage,” said Stephen Durr, President of Goodstone. “By consolidating ownership, we can make high-impact investments at competitive rates, timed to align with growth around the new metro so the value of the new combined asset will exceed the sum of its parts.” Goodstone plans to unify the properties with shared tenant amenities including food service, conferencing, fitness and tenant collaboration spaces, as well as deliver contemporary spec suites and turnkey tenant spaces desired by today’s employers seeking to attract talent.

“Northridge is well-located to serve a growing tenant market of technology, cyber-security, healthcare, and defense firms,” said Jay Haberman, Managing Director, Bridge Investment Group. “The properties are 87% leased, falling to 67% over the next eighteen months, which is ideal timing for Goodstone to implement its transformative vision tailored to suit the needs of this market.”

“The financing structure includes good news money to maximize the upside of Goodstone’s aggressive stabilization plan,” said John Sieber, Phillips Realty Capital Principal. “Phillips has worked with Goodstone on other value-add deals and with Bridge on recent recapitalizations and acquisitions. That combined experience and related knowledge served both the borrower and lender.”

A Cushman & Wakefield team led by Drew Flood and Shaun Collins represented the seller of Northridge I. Bill Prutting and Jim Molloy with Jones Lang LaSalle represented the seller of Northridge II.

About Goodstone

Goodstone LLC is a commercial real estate investment management firm headquartered in Washington, DC with investments in Maryland, Virginia and Texas. Goodstone sources, acquires and manages commercial office building investment opportunities on behalf of the firm’s principals, private clients and financial institutions. For more information visit www.goodstonellc.com.

About Waterfall Asset Management, LLC

Waterfall Asset Management, LLC is an SEC-registered institutional asset manager focused on structured credit and private equity investments. Waterfall was founded in 2005 and had approximately $8.7 billion in assets under management as of November 2019. Waterfall Asset Management’s headquarter offices are located in New York City. More information can be found online at www.waterfallam.com.

About Bridge Investment Group

A team lead by Jay Haberman originated the loan and provided the funds to acquire the Class-A office property. Bridge Investment Group is a privately-held real estate investment management firm with $16 billion in assets under management. Bridge combines its 2,700-person, nationwide operating platform with specialized teams of investment professionals focused on select U.S. real estate verticals, which Bridge believes offer above-market opportunity: multifamily, office, seniors housing, affordable housing, opportunity zones, and debt strategies. Read more at www.bridgeig.com.

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