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.”