Monday Properties Lands HQ Relocation To Help Stabilize Rosslyn Office Tower
An Arlington-based nonprofit is switching neighborhoods to take space in an office tower where the landlord has struggled to make its debt payments.
The National Association of Corporate Directors has signed a 40K SF lease at Monday Properties' 31-story office tower at 1100 Wilson Blvd. in Rosslyn, Monday Managing Partner Tim Helmig told Bisnow.
The organization, which has represented and assisted board directors for over 45 years, is moving its headquarters less than a mile away from its space at 1515 N. Courthouse Road in Arlington's Courthouse neighborhood. Its footprint is staying the same, a Monday spokesperson said.
The 1100 Wilson Blvd. tower is part of a seven-property, 2.1M SF portfolio of Rosslyn office buildings on which Monday went into monetary default last summer after missing a payment on a piece of an $841M CMBS loan.
Helmig told Bisnow the portfolio is now in special servicing and the firm is working with the special servicer and its lending partners to try to recapitalize the portfolio and resolve the issue.
He said deals such as the NACD lease help that effort. The tower and its sister building, 1000 Wilson, which together total 1.3M SF of offices, have a combined leased percentage in the mid-80s, Helmig said.
"It enhances the collateral, it speaks to the viability of the assets and certainly underscores our ability to shepherd the assets through these challenging times," Helmig said.
Transwestern's Michael Goldman, Kamis Lawrence and Claire Poole represented NACD in the lease, while JLL's Yorke Allen, Lee Brinkman, Herb Mansinne and Robert VeShancey, along with Monday's John Wharton, represented the landlord.
The landlord last month resolved another debt issue on a separate Rosslyn office building, the 35-story tower at 1812 N. Moore St. The Nestlé-anchored skyscraper had been scheduled for an auction after mezzanine lender RBC Real Estate Capital Corp. moved to foreclose on it, but Monday avoided that auction by recapitalizing the asset.
To help save 1812 N. Moore, Helmig said Monday built out a series of spec suites and over the last six months leased a combined 35K SF to several new tenants: Evolent Health, Rockefeller Capital Management, Rocade Capital and National Electric Manufacturers Association.
As it works with new tenants, Helmig said Monday has noticed its representatives becoming more aware and inquisitive about the financial health of the landlord.
"There’s a lot of tenant brokers out there who are really doing their hard diligence on every ownership and every building just to be sure that whatever they promise they can deliver, and that’s what’s vitally important to our goals, is that whatever we promise, we’re actually delivering on," he said.
Those promises at the 1100 and 1000 Wilson towers have included a new 12K SF conference facility and lounge that opened in April. Helmig said that while the buildings were developed in the 1980s, their renovated amenity spaces, popular restaurant offerings and the views across the river into D.C. help them compete in the trophy segment of the office market.
Those characteristics, along with the increasingly mixed-use nature of the neighborhood, give Helmig confidence that Monday's Rosslyn portfolio is positioned to withstand the office market turbulence.
"Rosslyn's landscape has evolved dramatically since the delivery of Central Place, 1812 [N. Moore] and the new multifamily at the top of the hill," he said. "You can foresee where Rosslyn is headed with an abundance of new mixed-use. All the retail is completely vibrant. You don't see closures happening."
