WASHINGTON, DC—Jair Lynch Development Partnerssecured a $34.8 million loan fromSantander Bank at a seven-year term. JLL'sJon Goldstein, Wesley Boatwright and MikeYavinsky helped secure the financing.

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This is not a construction loan but Jair Lynch plans to use theproceeds partly for base building work and TI allowance, Goldsteintells GlobeSt.com. That is why the loan has the somewhat unusualterm of seven years-it is structured as an initial three-year termwith a four-year extension option. More typically such loans arestructured at three-year initial terms with two-year extensionoptions. "Banks will go out seven years but primarily if thesponsors do an initial three-year term and a couple of extensionoptions," Goldstein says.

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This structure gives the sponsor the best of both worlds, hesays.

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The bank felt comfortable with the structure because the82,058-square-foot office building is 100 percent leased toinvestment-grade tenants, namely the District of Columbiagovernment and CVS. "It takes a high-quality deal with this sort ofrent roll to get a bank comfortable going with that length of anextension," Goldstein says.

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Jair Lynch made a major investment in the H StreetCorridor in 2011 when it purchased H Street Plaza, the 600block fronting on the south side of H Street, NE, including theexisting office buildings at 609 and 645 H Street.

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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.