Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $17.5 million in acquisition financing for a three-building distribution facility totaling 487,897 square feet that is fully leased to CVS Caremark Corporation (CVS) in Fredericksburg, Virginia.
HFF, on behalf of the borrower, ARCTRUST, placed the 10-year, fixed-rate loan with Kansas City Life Insurance Company.
The CVS distribution facility is a mission-critical facility, serving as one of the company’s 17 U.S. distribution centers and distributing to 377 CVS stores across Maryland, North Carolina, Virginia and the District of Columbia. The facility, which was completed in 1985 and expanded in 1995, consists of a main building housing a warehouse and offices, an aerosol storage facility and a truck repair facility. The buildings have 39-foot clear heights and a total of 65 dock-high doors with one drive-in loading dock. Situated on 39.4 acres at 500 Lansdowne Road, the facility is located in northeast Virginia in the Great Fredericksburg industrial market.
The HFF debt placement team representing the seller was led by senior managing director Greg Nalbandian.
“We were able to identify an insurance company that understood the asset and met the client’s objectives by providing a 75-percent max LTV with a 10-year term and 30-year amortization,” Nalbandian said. “Kansas City Life Insurance Company also offered prepayment flexibility, which was a critical requirement of the sponsor.”
ARCTRUST is a private Real Estate Investment Trust (REIT) that specializes in the development, acquisition, financing and joint-venture of net lease properties. The company’s geographic focus is in the New York to Washington, D.C. corridor and Florida, although the company is also active in other metropolitan areas nationwide that have international airports. Over the past 30 years, ARCTRUST and its affiliates has been responsible for more than 500 transactions with an aggregate value in excess of $3 billion and has received numerous industry awards for its work in the area of net lease properties. ARCTRUST currently represents numerous tenants in their expansion programs and has an active joint venture program with preferred developers. For more information, visit http://arctrust.com.
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.