WASHINGTON, DC—Lastweek we covered JOSS Realty's acquisition ofGeorgetown Plaza at 2233 Wisconsin Ave.,NW, from Carr Properties for $26.8million. More details of the transaction have emerged,namely about the financing JOSS secured to buy the 150,097-squarefoot, five-story office building that has a 79% occupancy rate.

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Gideon Gil, Alexander Hernandez, SridharVankayala and Alex Lapidus ofCushman & Wakefield secured a $24.5million senior mortgage loan from Square MileCapital Management LLC, which along with USAA Real EstateCo. launched a CRE loan platform a year ago, almost to theday.

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It is three-year, floating-rate financing, with two one-yearextension options.

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"There was tremendous interest in this deal for a couple ofreasons," Gil tells GlobeSt.com—its location in Georgetown, thevalue-add upside and the capital expenditures that the buildingwould need.

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"We had a variety of lenders from banks to CMBS to debt fundsinterested, and the client went with the provider that couldprovide the most flexible structure and maximum proceeds."

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The facility is a custom structure for JOSS that providesfinancing for the capital expenditure as well as for the TI leasingcommission. Convention lenders can do bits and pieces of this, Gilsays, but they are unlikely to be able to underwrite a customstructure.

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