WASHINGTON, DC-America’s Square, a 461,484-square-foot office complex in the District’s CBD has recapitalized with a first mortgage loan provided by MetLife and a mezzanine loan provided by local REIT First Potomac Realty Trust.
America‘s Square, owned by local developer-investor Dweck Properties, consists of 51 Louisiana Ave., a 205,580-square-foot office building, and 300 New Jersey Ave., a 255,904-square-foot office building that delivered in April 2009. Combined, the buildings occupy an entire city block, located one block north of the US Capitol Building and two blocks south of Union Station.
A first mortgage is a routine transaction for MetLife but this particular deal is only the second mezzanine loan that First Potomac has placed, founder and CEO Douglas Donatelli tells GlobeSt.com. The other was for 950 F St., NW.
He says that First Potomac is moving cautiously into this area, only providing such financing on a one-off basis. “For the right opportunity it is something we would consider,” he says. “For this particular loan, we liked the transaction because it is an outstanding trophy asset and we know and like Ralph Dweck.”
America’s Square is currently 93% leased to such tenants as Jones Day, Comcast, Carr Workplaces and Siemens, which recently relocated its US headquarters from New York City to the property. The five-year mezzanine loan has a 9% interest rate.
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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.
