Business
Comstock Arranges $350+ Million Financing Package to Refinance First Three Completed Trophy Office Towers at Reston Station
Blackstone Provided $312 Million Senior Loan Facility While DivcoWest Provided $43 Million in Preferred Equity RESTON, Va., Oct. 04, 2021 (GLOBE NEWSWIRE) --
About this update from Comstock Holding Companies, Inc.
[{"type":"text","content":"Blackstone Provided $312 Million Senior Loan Facility While DivcoWest Provided $43 Million in Preferred Equity\nRESTON, Va., Oct. 04, 2021 (GLOBE NEWSWIRE) -- Comstock Holding Companies, Inc., (NASDAQ: CHCI) (“CHCI” or “Comstock”) announced that on September 29, 2021, its capital markets group completed a refinancing of the first three Trophy Class office Towers developed by CHCI at Reston Station, the 60-acre transit-oriented, mixed-use development that is home to the first Silver Line Metro station in the Dulles Corridor. In connection with the closing of the transaction, CHCI received ~$2.6 million in debt and equity origination fees. CHCI subsidiaries arranged the non-recourse construction take-out recapitalization package on behalf of Comstock Partners, LC, an affiliated, privately-held company (“Partners”), which includes a $312 Million senior loan provided by a Blackstone subsidiary and a $43 Million preferred equity facility with a DivcoWest subsidiary. The recapitalization package replaces construction loans provided by Bank of America covering 1900, 1902, and 1906 Reston Metro Plaza (the “RMP Offices”). The RMP Offices are ~84% leased and include numerous high quality tenants including Google, Rolls Royce N.A., ICF Global, Neustar, Spaces by Regus, Certipath, and Megaphone, a Spotify subsidiary. Retail tenants servicing the RMP Offices include Starbucks, CVS, Founding Farmers, matchbox, Bigs Buns Burgers, and Salon Nordine. The DivcoWest transaction related to Reston Station represents the second transaction between Comstock and DivcoWest, following their joint venture purchase last year of the Hartford Building, a 211,000 square foot Class-A office tower located at the Clarendon Metro Station in the Rosslyn-Ballston Corridor of Arlington County. CHCI serves as developer, asset manager, and property manager of an approximately 7.5 million square foot portfolio of stabilized and development properties owned by Partners which represents estimated assets under management of ~$3.0 billion at full build-out (the “Anchor Portfolio”). The Anchor Portfolio primarily includes mixed-use properties located adjacent to key Metro rail stations in the Dulles Corridor in the northern Virginia suburbs of Washington, DC. Additionally, CHCI, through its institutional venture platform, acquires and manages stabilized properties with a fo...