Developer Comstock Receives Refinancing For First 3 Towers Its Built At Reston Station

RESTON, VA — Comstock Holding Companies, Inc. (CHCI) and its capital markets group reported Wednesday that they had finished refinancing the first three office towers at Reston Station, according to a company release.

CHCI is currently developing the 60-acre, mixed-use tract, which is located at Metro's first Silver Line station in Reston. As part of the refinancing, CHCI received $2.6 million in debt and equity origination fees.

The non-recourse construction take-out recapitalization package put together by CHCI subsidiaries includes a $312 million senior loan by a Blackstone subsidiary. A DivcoWest subsidiary is also providing a $43 million preferred loan.

The recapitalization package replaces the construction loans CHCI received from Bank of America for offices situated in 1900, 1902, and 1906 Reston Metro Plaza. Among the tenants of the offices, which are 84 percent leased, are Google, Rolls Royce N.A., ICF Global, Neustar, Spaces by Regus, Certipath, and Megaphone.

“Building long term relationships with best-in-class capital providers such as Blackstone and DivcoWest is among our key strategic initiatives and we believe the financial commitment of these market leaders to Comstock and Reston Station affirm the pre-eminence of our office portfolio in the Dulles Corridor," said Chris Clemente, CHCI’s chairman and CEO, in a release. “Closing this long-planned recapitalization in an attractive interest rate environment allows us to accelerate the recently commenced development of the next phase of Reston Station while we also focus on aggressively scaling up acquisitions of multi-family assets in our institutional venture platform. We look forward to updating the market in the very near-term on our progress on that front as we continue to focus on creating value for all Comstock’s stakeholders."

Back in 2016, CHCI submitted plans for a big new expansion at Reston Station, proposing a mixed-use project with 500 residential units and a lot of retail and office space. Work on the project begin in 2018.

In 2020, CHCI's capital markets group secured a $73 million loan with Federal Home Loan Mortgage Corporation (Freddie Mac) for the BLVD I luxury apartment tower, which is located at 1908 Reston Metro Plaza. The new 10-year loan replaces a maturing construction loan provided by Citizens Bank.