A 12-story, 191,358-square-foot office building located at the corner of 18th and K Streets, the lender liked both the location and the strong tenant, according to Cassidy Turley. The deal is illustrative of the growing appetite for DC assets by life insurance companies--a lender community that last year invested primarily to protect their portfolios. This year, though, there are clear indications they are increasing allocations to real estate with an eye toward growth, however incremental.
For example, Prudential Multifamily Mortgage recently refinanced a multifamily project in Fairfax, VA, called Providence Apartments.Although their appetite, anecdotally at least, appears to be more for multifamily properties, there are growing instances of life insurers investing in DC office properties as well. For example, 1801 L St., an office building in the CBD that is 95% occupied by the Treasury Department, secured $34 million with a fixed-rate, long-term loan provided by a life insurer.
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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.
