$10M Loan for Canal Property Redevelopment

RICHMOND, VA-Real estate investment banking firm John B. Levy & Company Inc. has finalized a $10 million financing package for the total renovation of the historic structure at 15th and Dock streets. The construction rehabilitation loan will allow developer Fulton Hill Properties to redevelop the building into a 112,000-sf class A office property. The structure sits along the canal in Downtown Richmond's Shockoe Bottom area. "What is unique about this transaction is that it is only 30% pre-leased, "John B. Levy & Co. president John B. Levy says. "This is unheard of in this market, both due to the volatility in the capital markets and the state of the office market. It is almost impossible to get a construction loan today with a building that is less than 60% pre-leased, but we have a lender who understands this type of deal, knows the lead tenant, Baskervill & Son Architects, and was comfortable with the developer and the program." Baskervill is also serving as the designer on the project, which is scheduled for completion in March 2003.