WASHINGTON, DC—Financing details have emerged about the sale of 2025 M St., NW, a story that GlobeSt.com broke last month. The CBD office sale, which closed this month, was for $109 million, or $561 per square foot. A private family interest in Brazil acquired the 195,624-square foot office from a partnership between Clark Enterprises and The Oliver Carr Co.

Charles Foschini, Christian Lee and Christopher Apone of CBRE Capital Markets' Debt & Structured Finance in Miami originated $63.6 million in financing for the acquisition.

RAIT Financial Trust provided the 10-year loan with three years interest only.

On the surface it appears to be an aggressively structured deal, Foschini tells GlobeSt.com.

But the buyer put up 35% of the purchase price to acquire the building, he notes. Also, the property's residual value is strong because of the additional development rights associated with the building.

"The lender got very comfortable that the buyer would not walk away from that type of equity and, at any rate, the loan was well protected because of the residual value."

RAIT was able to compete with other lenders on both pricing and structure, Foschini adds, because as a public-owned mortgage REIT it can hold its own B piece. "That allowed them to be more aggressive in the terms and offer a seamless execution."

Instant Insights /

Why RAIT Financial Was Able to Provide Aggressive Finance for 2025 M

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