Overview
Cushman & Wakefield | Thalhimer is pleased to offer the opportunity to acquire a $45 million matured loan secured by 440 Monticello Avenue (the “Property”), a prestigious 258,542-SF, 23-story Class A office tower situated in the highly accessible and amenity-rich Central Business District of Norfolk, VA. This offering presents a compelling opportunity to obtain control of a flagship asset at a significantly reduced basis, providing both near-term resolution optionality and long-term value creation.
This opportunity is being driven by a recent maturity default, affording the note buyer an ideal position to pursue multiple exit strategies. Importantly, the Property continues to generate meaningful contractual revenue, which supports an attractive new investment basis. This combination of in-place cash flow and favorable cost basis creates a strong foundation for future leasing success.
Investment Highlights
- Generational basis reset opportunity in downtown Norfolk with a projected 50%+ discount to the previous note, allowing a new owner to infuse capital and lease remaining vacancies the prior borrower was unable to capture
- The newest and most modern office building in the Norfolk CBD featuring high-end finishes, structured parking, and immediate access to I-264 and I-464 as well as the Norfolk Tide Rail Line
- Rare value-add profile supported by durable cash flow from creditworthy tenants with near-term upside through targeted lease-up
- Located in the heart of the Norfolk CBD, surrounded by a mix of government, corporate, and institutional demand drivers and strong office fundamentals, with only 12% vacancy, positive absorption and rents that have increased 31% since 2015
- Positioned to benefit from continued downtown momentum and densification in a growing live-work-play environment with significant renovation plans confirmed for the adjacent Chrysler Hall and Norfolk Scope Arena
