The 12-story, 252,834-square-foot office building, located in the District'sDowntown, underwent a $25.1-million renovation recently. It is close to 60% leased to several tenants including Davis Polk & Wardwell, which took about 20,000 square feet of space there last year.
There was a lot of interest in this transaction despite the relativelylow occupancy rate for a downtown asset. Mudd tells GlobeSt.com that alife insurance company was outbidded for the transaction and that severalother lenders had expressed interest in the asset. The deal alsoshows that "offshore banks can be competitive with domestic insurancecompanies," he adds.
Interest in the bidding was based on the quality of the borrower, thebuilding and its location, with the occupancy rate playing very littlerole, Mudd says. "I don't believe the occupancy rate had a bearing onthe lender's terms that were ultimately accepted," he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
