WASHINGTON, DC-Weeks after a joint venture between Minshall Stewart Properties and an affiliate of Heitman, LLC acquired 1401 New York Ave. in an off-market trade for $95 million, the new owners have secured non-recourse bridge financing to bring up the building's 60% vacancy rate and make a much needed renovation.

Cassidy Turley's John Campanella and Paul Spellman secured the floating rate loan from a national bank. Campanella tells GlobeSt.com that the non-recourse financing closed in three weeks, with multiple banks competing for the business.

He says there is strong appetite on the part of both borrower and lender for floating rate short term financing. "I would say some 90% of our business last year and in 2012 was short-term floating-rate bank deals that were structured for capital expenses and TI leasing commissions." He adds his team has developed something of an expertise in this area.

1401 New York Ave., which was spun off from a portfolio and marketed separately, is 210,260 square foot building in the heart of the East End, just one block from the White House. The new owners will be making major renovations, including a new floor-to-ceiling glass façade, lobby and rooftop deck.