JLL secures $42M loan for retail center near Washington, D.C.
The lifestyle-oriented retail property will undergo significant property upgrades
WASHINGTON, D.C., November 25, 2019 – JLL announced today that it has arranged $42 million in senior financing for the western portion of Rio, a 700,000-square-foot, lifestyle-oriented retail property in the suburban Washington, D.C. community of Gaithersburg, Maryland.
JLL worked on behalf of the borrower, Peterson Companies, to place the 12-year, fixed-rate senior loan with MetLife Investment Management. Loan proceeds will be used to refinance an existing loan and complete a multi-million-dollar capital improvement plan that includes the development of an outparcel building pre-leased to True Food Kitchen, garage repairs, refreshing building facades, expanding the boardwalk, new entertainment and programming spaces and an updated pedestrian bridge.
Rio has served as the area’s preeminent, master-planned, shopping, dining and entertainment destination for more than 25 years. The subject property is 98% leased to a mix of retailers that includes Target, Dick’s Sporting Goods, Kohl’s Department Store and Barnes & Noble along with restaurant tenants such as Yard House, Uncle Julio’s, Corner Bakery, Lanzhou Hand Pulled Noodles and Kung Fu Tea. Located at 9811 Washingtonian Boulevard, the property is located at the confluence Interstates 270 and 370, two of the most important, highly trafficked thoroughfares in Montgomery County. The area houses a dense supply of office space and daily workers from the large employers in the immediate submarket. More than 145,318 residents earning an average annual household income of $132,777 live within a three-mile radius of the property.
The JLL Capital Markets team representing the borrower was led by Senior Director Chris Hew and Director Evan Parker.
“Rio is an iconic center and provides a fantastic consumer experience,” Hew said. “We’re proud to be part of the financing effort.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
As one of the largest privately-owned real estate development companies in the D.C. region, Peterson Companies consistently delivers some of the area’s most exciting destinations. Over the past 53 years, Peterson has created such exceptional landmarks as National Harbor, Downtown Silver Spring, Fair Lakes and Fairfax Corner. With a proven ability to move quickly on opportunities to reshape and enhance local communities, the company creates vibrant residential and business districts that benefit all who live and work in its region. Combined with Peterson Companies’ extensive real estate portfolio of mixed-use retail, residential and office developments are several other companies and investments, such as Vizuri Health Sciences, that together, reflect the company’s commitment to improve the lifestyles of those who share the place they call home. For more information about the Peterson Companies, please visit petersoncos.com.