A $36.5 million loan on a Reynolds Crossing building is refinanced – Richmond.com

A $36.5 million loan on a key building in the Reynolds Crossing development in western Henrico County has been refinanced.

The refinancing was on an eight-story building at 6603 W. Broad St., which is the headquarters for Philip Morris USA. That building is across the street from the former Reynolds Metals Co. building that is now headquarters for Altria Group Inc., the parent company of Philip Morris USA.

Coastal Federal Credit Union, based in North Carolina, refinanced the loan for a seven-year term, said J. Sargeant Reynolds Jr., a principal in the familys Reynolds Development partnership that owns Reynolds Crossing.

A 10-year commercial mortgage-backed security loan was coming due in August. The CMBS loan was the largest single loan among about 40 in the Richmond area that were slated in April to mature between then and August, according to Trepp LLC, a New York-based provider of analytics and commercial real estate information.

Mortgage broker Phillips Realty Capital help secure the financing on behalf of Reynolds Development.

The 15-year lease on the 222,057-square-foot building expires in 2024, Reynolds said. The building was built in 1968 and renovated in 2007.

Meanwhile, construction has started on a two-story medical office building that is the final office project in the 90-acre mixed-use development.

Tenants will be the Virginia Eye Institute and Dermatology Associates of Virginia. Both companies will have an ownership stake in the building with Reynolds Development, Reynolds said.

The 49,200-square-foot building is under construction on land that is northeast of the Shoppes at Reynolds Crossing retail center and north of the Walmart store. It will be built along the Interstate 64 eastbound on-ramp.

The building, which is estimated to cost $11.5 million to $12 million, should be finished by July 2018, Reynolds said.

Also underway in Reynolds Crossing is the development of a 2-acre site for additional retail fronting Forest Avenue. This piece is being developed by The Wilton Cos., a Henrico real estate company that bought the parcel last year from Reynolds Development.

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A $36.5 million loan on a Reynolds Crossing building is refinanced - Richmond.com