Arlington, Virginia – Our NNN Commercial Real Estate news today from the beautiful town known as Arlington. Our news today is regarding commercial real estate investors finding commercial loans. We have read that a Commercial Loan was funded for Vornado Realty Trust. Vornado Realty Trust used their Office Building at 2121 Crystal Drive in Arlington, Virginia for collateral.
The commercial real estate development, 2121 Crystal Drive is a mixed-use property. The commercial real estate development is a Class-A building which presents spectacular views of the Potomac River and the Washington, DC skyline. This commercial real estate development is near a wide variety of fine dining, and retail shopping. The Crystal City Shops are across the street and offer 130 retail outlets and restaurants. This Investment Property benefits from gorgeous, lush landscaping. The commercial real estate development is adjacent to a Sport & Health full service fitness facility. That fitness facility includes a swimming pool, Jacuzzi, and sauna. Also the 2121 Crystal Drive commercial real estate development is within walking distance from Four major hotels. This commercial real estate development is a sub-section of Arlington, known as Crystal City. The area provides a suburban type atmosphere for comfort, but it still is in close proximity to significant core business districts.
This Commercial Loan for Vornado Realty Trust was funded for $150 million. The Investment Property used for collateral is approximately 506,109 square-feet. The Commercial Loan had terms of a 12-year mortgage with a fixed rate. This commercial loan had a 5.51% interest rate. This commercial mortgage amortizes as it is based on a 30-year schedule that begins in year three. This Arlington Investment Property was owned free and clear of commercial loans before recent Commercial Mortgage Lenders arranged investment property financing.
The Arlington County records have this Investment Property valued for 2011 assessed at $154.8 million. This Commercial Loan collateral is a 12-story Office building. The Commercial Loan collateral was developed in 1985 and renovated in the year 2006. Even with the renovation of this commercial loan collateral, the U.S. Patent and Trade Office moved out in 2006 as they had been leasing approximately 400,123 square feet. The commercial loan collateral recovered in 2009 with Lockheed Martin leasing most of the vacant space to help the net operating income (NOI).
There is no doubt that Commercial Mortgage Lenders were comfortable to fund this commercial loan given the occupancy rate is over 99.0%. This Commercial Loan collateral is also known as Crystal Park Two. This Commercial Loan collateral is close to the Pentagon, and Reagan National Airport. The Investment Property is also close to Washington, D.C. as it sits in Arlington’s Crystal City submarket.
Vornado Realty Trust is a real estate investment trust “REIT” headed by Michael Fascitelli with assets totaling more than 100 million square feet, including Vornado’s 16 million square feet of Toys “R” Us commercial real estate. Vornado Realty Trust is one of the largest owners and managers of commercial real estate in the United States with a portfolio that is primarily located in the New York and Washington, D.C. and the the D.C. metropolitan areas. Vornado Realty Trust currently has four major platforms that include New York Office Buildings; Washington, D.C. Office Buildings and Retail net lease properties and Merchandise Mart.
Vornado Realty Trust has many other Commercial Real Estate Investments including:
•70% interest in 555 California Street, a San Francisco office complex totaling over 1.7 million square feet
•32.4% interest in Alexander’s Inc.
•32.7% interest in Toys “R” Us
•Hotel Pennsylvania in New York City
•Mezzanine loans to commercial real estate related companies
•Interests in other commercial real estate, including interests in office, industrial and retail net lease properties with major corporations as Tenants; 6 warehouse / industrial properties in New Jersey containing approximately 1.2 million square feet; and other investments and marketable securities
Also for commercial real estate investors in a 1031 exchange, you can search Net Lease Properties to purchase.