Bethesda, MD, July 31, 2017 –
Phillips Realty Capital secured a $30,000,000 first mortgage loan from Blue Vista Finance for Goodstone LLC’s extensive renovation and repositioning of 6116 Executive Boulevard in North Bethesda, Maryland. The financing was structured by Phillips Realty Capital’s John Sieber, David Foulk, and Patrick Kelly, based on market analysis by Bill Wrench, chief underwriter at Phillips.
The 217,732 square foot, eight-story office building was built in 1989 and vacated by the National Institutes of Health’s National Cancer Institute in 2013. Goodstone acquired the vacant building in April for $9.5 million from a special servicer through a Ten-X Commercial auction. The last arms-length sale of the property occurred in 2005 for $81.5M.
“Phillips was able to present lenders with a comprehensive assessment of our vision to restore the building to its best-in-class status in this highly desirable submarket,” Goodstone president Stephen Durr said. “This property is ideally situated for employers looking to transition from the higher rental rates of downtown Bethesda while still offering their employees metro access and North Bethesda’s best urban amenities.”
The North Bethesda submarket has evolved to serve a transit-oriented population, offering exceptional retail and dining. The acclaimed Pike & Rose development is within easy walking distance from the Executive Boulevard property, as is the White Flint Metro Station.
Goodstone’s extensive $10 million capital investment plan includes new and contemporary entries, elevators and common areas, and state-of-the-art fitness center, conference facility, high-end vending café and visitor lounge, and upper floor tenant terrace. The building offers efficient floor plates with continuous window lines, and select areas with balconies and floor-to-ceiling glass. The property also includes a three-level underground parking garage.
6116 Executive Boulevard is 0.7 miles from the White Flint Metro Station (Red Line), two stops from the National Institutes of Health (NIH), three stops from both downtown Bethesda and Shady Grove, and approximately a 30-minute ride to the downtown DC. The property’s location at the confluence of Route 355 (Rockville Pike), Route 187 (Old Georgetown Road) and Montrose Parkway provides quick access throughout the entire D.C. Metro area.
Goodstone has selected JLL to handle the leasing and Cushman & Wakefield for the property management. Occupancy is expected to be available in June 2018.