November 25, 2019 – JLL announced today that it has arranged $42 million in senior financing for the western portion of Rio, a 700,000-square-foot, lifestyle-oriented retail property in the suburban Washington, D.C. community of Gaithersburg, Maryland.
JLL worked on behalf of the borrower, Peterson Companies, to place the 12-year, fixed-rate senior loan with MetLife Investment Management. Loan proceeds will be used to refinance an existing loan and complete a multi-million-dollar capital improvement plan that includes the development of an outparcel building pre-leased to True Food Kitchen, garage repairs, refreshing building facades, expanding the boardwalk, new entertainment and programming spaces and an updated pedestrian bridge.
Rio has served as the area’s preeminent, master-planned, shopping, dining and entertainment destination for more than 25 years. The subject property is 98% leased to a mix of retailers that includes Target, Dick’s Sporting Goods, Kohl’s Department Store and Barnes & Noble along with restaurant tenants such as Yard House, Uncle Julio’s, Corner Bakery, Lanzhou Hand Pulled Noodles and Kung Fu Tea. Located at 9811 Washingtonian Boulevard, the property is located at the confluence Interstates 270 and 370, two of the most important, highly trafficked thoroughfares in Montgomery County. The area houses a dense supply of office space and daily workers from the large employers in the immediate submarket. More than 145,318 residents earning an average annual household income of $132,777 live within a three-mile radius of the property.
The JLL Capital Markets team representing the borrower was led by Senior Director Chris Hew and Director Evan Parker.
“Rio is an iconic center and provides a fantastic consumer experience,” Hew said. “We’re proud to be part of the financing effort.”