Federal Capital Partners (FCP) and RESI Management today announced the recapitalization of 4040 N. Fairfax Drive, also known as The Webb Building, a ten-story, 184,216 square foot office building in the heart of the Ballston submarket of Arlington, VA. FCP Fund II will provide $21.2 million of equity and Wells Fargo has provided a $33.5 million loan facility to fund the repositioning and retenanting of the asset.
”The Webb Building has been continuously successful since it first opened in 1966 because of its phenomenal location in Ballston, efficient design and the stewardship of the McMullin family,” said FCP Managing Partner, Tom Carr. “We see a unique opportunity to deliver a fully refreshed, high quality work environment at a price point substantially lower than the new buildings being delivered in the Rosslyn – Ballston corridor.”
The building, which will be vacated in December 2012 as part of the Base Realignment and Closure (BRAC) initiative, will be fully renovated, with a new lobby, landscaping, façade improvements, fitness center, updated common areas, updated HVAC and fire and life safety systems, and a roof deck with extensive views. James McMullin, President of RESI Management, said, “We began renovations early this year in anticipation of the market opportunity and are delighted to be joined by FCP to accelerate the completion of the work.”
Mike Shuler and Rob Walters of Avison Young have been retained to market and lease the building. Avison Young has also been selected to provide property management services to the property as of September 1, 2012. Avison Young Principal, Rob Walters, said, “Avison Young is extremely excited to team up with Federal Capital Partners and RESI Management. Given FCP’s proven track record and institutional experience, we firmly believe this newly formed venture will enhance this leasing opportunity and create a great value play for users seeking a newly renovated office building in the Rosslyn- Ballston Corridor.”
4040 N. Fairfax is two blocks from the Ballston Metro station, three blocks to the Virginia Square Metro station and one half mile to direct access to I-66. Dozens of restaurants and retail shops are within steps of the building.
RESI Management was represented by Phillips Realty Capital in the recapitalization and would like to extend its appreciation to John Sieber, David Foulk, Bill Wrench and AJ Luce for their efforts.
About Federal Capital Partners
Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $3.0 billion in assets since its founding in 1999. FCP is seeking debt and equity investments in commercial and residential real estate throughout the Mid-Atlantic region, including Washington DC, Maryland, Pennsylvania, Virginia, Delaware, West Virginia, New Jersey and the Carolinas. FCP buys assets directly as well as through joint ventures with local operating partners through equity, preferred equity or mezzanine debt investments. The firm, based in Chevy Chase, MD, manages $769 million of discretionary capital. FCP is currently investing FCP Realty Fund II, L.P., a $529 million commingled, discretionary fund closed in 2012. For further information on FCP, please visit www.fcpdc.com