Finance Transaction of the Year - Regional
Phase I CBRE’s Mid-Atlantic Debt & Structured Finance Group arranged the non-recourse construction financing of $536 million for Phase I of The Boro, a 4 million square foot master planned development located in the heart of Tysons, VA, in 2017. The Financing for Phase I was broken up into four different components/debt facilities and included 10 lenders. i) 537 Apartments and 222,500 SF of Retail & Office with 4 senior lenders and a mezzanine lender; ii) 425,500 SF Spec Office Tower with a senior lender and a mezzanine lender; iii) 140 Condominium Tower on a shared podium with a senior lender and a mezzanine lender; iv) 99,000 SF ShowPlace ICON Theatre and Retail with a senior lender; In addition to the size of the financing request, the largest in the region for the year, the project faced multiple hurdles during the successful capital raise. Issues ranged from the complexity of multiple ownership entities building on a shared podium with numerous cross easements and covenants, to financing a specialty theater operated by a recently formed company. Additional challenges included convincing banks to lend non-recourse debt on spec office construction and condominiums, two of the more challenging product types, in the most difficult time period for construction financing due to the (then) new Dodd Frank regulations. CBRE team members included David Webb, Maxi Leachman, and Will Wilkins.