Kiesling has nothing but praise for lenders Morgan Stanley Dean Witter Mortgage Capital Inc. of New York City and GE Capital of Stamford, CT in holding firm to spreads to consummate permanent loans on office properties in a climate that's been anything but calm. The 50,190-sf Offices @ Grapevine Parkway I, located at 2550 SW Grapevine Parkway, secured a loan for a little more than $5.4 million with Morgan Stanley Dean Witter while the 87,018-sf 1600 Lamar in Arlington mortared a $7.1-million loan through GE Capital.

The deals started in May and just closed. "We couldn't have picked a worse time to embark on this process," Kiesling says. "It's a difficult environment to get anything done today, particularly office properties. It took about twice as long as it ideally would have."

The 10-year loans went through on a locked 7 1/4% interest rate and 30-year amortization. The Offices @ Grapevine Parkway I carried a 75% LTV while 1600 Lamar had an 80% LTV. In both instances, says Kiesling, the deals couldn't have been cut at their sought loan amounts "if we'd be going to the streets today. Obtaining full leverage on office building transactions is increasingly difficult."