PNC Capital Markets expected to close syndication of a $100 million construction loan last week it provided to a joint venture between CarrAmerica Realty Corp. and J.P. Morgan Investment Management's J.P. Morgan Special Situation Fund. PNC will hold $25 million while US Bank and Commerzbank will hold $22.5 million each. KBC Bank andNational Australia Bank will hold $15 million each. Lenders were given up-front fees of 55 basis points on commitments of $25 million and 40 basis points on lower commitments.
The loan funds the Washington, D.C.,-based real estate investment trust's development of Terrell Place, a local office building. The 477,000-square-foot, Class A project is located in the city's East End across from the MCI Arena. The loan represents 65% of cost and 57% of value, he said. The 31/ 2-year secured construction loan is priced at LIBOR plus 15/ 8%.