200 Professional Drive
200 Professional Dr, Gaithersburg, MD 20879
This investment represents a $10.5 million senior interest-only loan on 200 Professional Drive, a 60,528 square foot office property in Gaithersburg, Maryland. The proceeds of the loan will be used to repay current mortgages, provide for tenant improvements and leasing commissions and fund the renovation of the building exterior, common areas and lobby. The KBS Loan term is 24 months, with one 12 month extension option.
The Property was built in 1982. When the borrower purchased the property in 2000, the building was 100% occupied. The original business plan was to convert the building into office condominiums and the building was de-tenanted in 2006. With the market shifting away from condo conversions, the borrower changed their business plan and is now seeking to reposition the building to a for-lease property. The borrower’s business plan is two fold. The building is currently considered a Class-C property. The planned renovations to the exterior, lobby and common areas will increase the profile of this property to Class-B space. With the renovations complete and a budget for tenant improvements and leasing commissions, the borrower will seek new tenants with the goal of moving occupancy from 25% to at or near 100%.
Investment at a Glance
Location: Gaithersburg, MD
Property Type: Office
Investment Type: Senior Bridge Loan
Acquisition Date: August 1, 2007
Total Loan Capacity: $10,542,752
Anticipated Loan Term: 2 Years
No. of Buildings: 1
Square Footage: 60,528 SF