Borrower to extensively renovate suburban offices into modern, Class A building
Trez Capital, a private real estate lender helping to build better communities across North America, closed a $22.03 million loan for a significant office renovation project in the Philadelphia area. The borrower plans to revitalize a mostly vacant 367,681-square-foot suburban office building into a modern, Class A campus.
The transaction closed on July 13. Alliance HP Virginia Drive LLC is the borrower.
Located at 500 Virginia Drive in Fort Washington, Pennsylvania, the office building was originally constructed in 1999 on 28.3 acres of land. Renovations are underway. The borrower plans to add Class A finishes and modernize the building with a new entrance, dock doors and amenities.
Trez Capital Executive Managing Director, Eastern U.S., Brett Forman and Vice President, Origination, Scott Mehlman originated the financing transaction.
“The broader market where this building is located is thriving with research and development and flex office users, but it has a dearth of available space,” said Forman. “This project will help the community grow by driving new businesses and higher-paying jobs to the area.”
Suburban office markets are gaining steam, as office users prioritize health and quality of life by targeting spaces closer to where employees live. In its second quarter of 2021 report, JLL predicted this trend “will likely drive investment across the Philadelphia suburbs, both in terms of kicking off proposed construction projects and focusing investment on assets that can adapt to shifting preferences.”
“We believe the doom-and-gloom narrative related to the pandemic’s impact on the office sector is overstated,” said Forman. “While employers undoubtedly are evolving when it comes to flexibility and hybrid schedules, the need for well-located office product will not disappear. We are selectively targeting opportunities to finance office projects in markets with strong fundamentals.”
Trez Capital provides short-term debt and equity financing typically between six months and 36 months in term ranging from $5 million up to $100 million in loan value.
About Trez Capital
Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate debt financing solutions in Canada and the United States. Trez offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured, high-yield mortgage investment funds, and provides property developers and owners with quick approvals on flexible short- to mid-term financing.
With offices in Vancouver, Toronto, Dallas, Atlanta and Palm Beach, Trez Capital has over $3.9 billion in assets under management and has funded over 1,500 transactions totaling more than $12.5 billion since inception. For more information, visit www.trezcapital.com.