Comstock Arranges $350+ Million Financing Package to Refinance First Three Completed Trophy Office Towers at Reston Station

Comstock Holding Companies, Inc. 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 focus on transit-oriented, mixed-use assets throughout the Washington, DC region.

“Building long term relationships with best-in-class capital providers such as Blackstone and DivcoWest is among our key strategic initiatives and we believe the financial commitment of these market leaders to Comstock and Reston Station affirm the pre-eminence of our office portfolio in the Dulles Corridor”, commented Chris Clemente, CHCI’s Chairman and Chief Executive Officer. “Closing this long-planned recapitalization in an attractive interest rate environment allows us to accelerate the recently commenced development of the next phase of Reston Station while we also focus on aggressively scaling up acquisitions of multi-family assets in our institutional venture platform. We look forward to updating the market in the very near-term on our progress on that front as we continue to focus on creating value for all Comstock’s stakeholders”.

CHCI partnered with Eastdil Secured, a financial advisory services firm, on the Blackstone engagement. Herb Mansinne and Robert VeShancey of Jones Lang LaSalle, a full-service commercial real estate services firm, provide leasing services for the RMP Offices.

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