Knighthead Funding provided a short-term $10.75MM non-recourse loan to refinance a 1.10-acre site that has been fully approved and permitted for the development of a 23-story multifamily tower in the Tysons Corner neighborhood of McLean, VA.

The property is located at 8130 Watson Street, approximately one-half-mile from the Greensboro Metro Station. The sponsor, which has owned and operated the restaurant J.R.’s Stockyard Inn on the site for more than 40 years, received upzoing approval that allows for the development of a 325,000-square-foot high rise apartment tower with 244 multifamily units, ground-floor retail and underground parking.

By 2050, Tysons Corner is projected to add 50 million square feet of new construction and see its population quadruple to 100,000 residents. Three-quarters of this future growth will be concentrated within a half-mile of each of Tysons’ four new Metrorail stations. The proposed development will help meet the demand for new housing in the area.  

Proceeds from the nine-month, non-recourse loan, which closed less than 15 days from application, were used to retire the existing mortgage and fund costs to market the property to a developer.  

“This is another example of Knighthead’s ability to close transactions quickly and execute with certainty for our borrowers,” said Brian Sullivan, Knighthead Funding’s Vice President who originated the loan.

“The site is located in a highly desirable neighborhood that is poised for significant redevelopment under the Tyson’s Corner Urban Center Plan,” added Knighthead Principal, Jonathan Daniel. “We were able to close the financing quickly, which will allow the sponsor to stay on track and sell the property in a timely manner.”