WASHINGTON, DC-RREEF, which acquired 1250 Eye St., NW, in 2006 on behalf of a client, has refinanced the 175,301-square foot building with an aggressive $41.1 million fixed-rate loan from a life insurance company. Cassidy Turley's John Campanella and Paul Spellman helped arrange the financing.
Campanella calls the transaction one of the most competitive the company has arranged to date in the District. It is seven-year, interest-only financing "and very competitive rate-wise," he tells GlobeSt.com. Campanella declined to provide the rate but did note that the building was hotly pursued by other lenders that were pitching bids "in the sub 3% range."
This loan was arranged before Treasuries began to move and speculation about where interest rates were headed started to mount. But the decision to go with a life company and fixed-rate financing likely would have been made regardless, Campanella says. "The majority of these stabilized office transactions will opt for life money," he says.
1250 Eye St., is a 12-story building that is currently 91% leased. Its lobby was renovated in 2009.
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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.
