RREEF Property Trust, a publicly registered non-traded real estate investment trust, purchased an office building in Sterling, Virginia from Sun Life Assurance Company of Canada for $21.95 million, exclusive of closing costs.
The property is a four-story, 102,015 square-foot Class A suburban office building located within the Loudoun Gateway Business Park. It contains 480 surface parking spaces or 4.7 spaces per 1,000 square feet. The property is located approximately three miles north of Washington Dulles International Airport and is within close proximity to a network of highways and other commuter thoroughfares that connect Northern Virginia with the broader Washington, DC metropolitan region. It is 100 percent leased to Orbital ATK,
RREEF Property Trust funded the acquisition with existing capital and a $20 million borrowing from the company’s credit facility with Wells Fargo Bank, N.A. Of the $20.0 million borrowed, approximately $8 million is from existing borrowing capacity on previously acquired properties, while approximately $12 million is allocated to the property. The credit facility bears interest at a variable annual rate equal to the one-month LIBOR plus 1.70 percent, payable monthly, which equated to approximately 2.10 percent at the time of acquisition for these borrowings.
With these borrowings, the company’s seven properties have a combined loan-to-cost ratio of approximately 55 percent and the company has an overall loan-to-value ratio of approximately 50 percent.
RREEF Property Trust has engaged Transwestern Carey Winston as the property manager.
RREEF Property Trust is a daily NAV real estate investment trust that employs a blended strategy that includes commercial real estate, publicly-traded real estate securities, real estate-related debt and cash and cash equivalents. The REIT targets investments in income-producing properties with established cash flow and the potential for value appreciation, focusing primarily on U.S. commercial real estate assets selected from the industrial, retail, office, and multifamily sectors.