Two Simultaneous Deals Closed Fast

Process created efficiencies and cut costs for Washington Holdings

PNC Real Estate closed two deals simultaneously for long-time client Washington Holdings, meeting a tight deadline. Each deal had its own requirements and specific structure.

Washington Holdings is a fully integrated, privately held commercial real estate investment, management and development company based in Seattle, Washington.  

Washington Holdings purchased North First Corporate Center, a 248,835 square foot, six-building office/R&D park in San Jose, CA, for $60 million in August 2017. The client’s business plan includes upgrading the exterior and interior of the property and re-leasing vacant or expiring space. PNC delivered a three-year bridge loan that will enable the client to complete this plan and meet their goals.

A few months later, the client purchased the nearby Montague Oaks, a 268,824 square foot, eight-building campus, for $90 million. For this property, which is 100% leased and does not require extensive upgrades, PNC provided a 10-year term loan. PNC Capital Markets also provided an interest rate swap on the facility for the entire term.

Both financing opportunities were high-profile and competitive. The client ultimately selected PNC thanks to a long-standing relationship and PNC’s ability to close both loans simultaneously. The PNC team based in the Bay Area took a hands-on approach to the deal and leveraged familiarity with the area and a depth of knowledge of the property type.

Although the client was able to purchase the properties before the loans were in place, they wanted the permanent financing to be completed by year-end. The deal closed in just six weeks following the signing of term sheets in late October 2017.

In discussing the deal, Jason Hizer, Senior Vice President, Washington Holdings, noted, “PNC’s ability to present flexible financing options to meet the individual needs of our two different projects, convinced us that they were the right partner. Having one bank do all the documentation, negotiation and due diligence was efficient from a legal standpoint and also kept costs down.”

Date: December 2017

North First Corporate Center
Location: San Jose, California
Financing Amount:
$40 million
Financing Type: Bridge loan
Scope: 248,835 square feet

Montague Oaks
San Jose, California
Financing Amount:
 $54 million
Financing Type: 10-year term loan swapped to a fixed rate
Scope: 268,824 square feet


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