Public Sector Pension Investment Board has scored a $1.03 billion loan to refinance its Washington, D.C., mixed-use property, The Wharf, which it recently acquired majority ownership in.
The Canadian pension fund, also known as PSP Investments, will include its $59.8 million equity combined with $125 million in mezzanine financing, according to a report from Commercial Observer. The five-year loan will be used in part to pay back the $1.15 billion existing debt, support $18.7 million worth of tenant upgrades at the property and for closing costs on the deal.
The following banks originated the new loan: Wells Fargo, Goldman Sachs and Morgan Stanley.
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PSP was first an investor in The Wharf back in 2014 when it poured $225 million into the development. Phase one was completed in 2017, with the second and final portion of the site finalized in 2022, costing a total of $3.6 billion. Then, earlier this year, PSP bought the more than 3.5 million square feet property for reportedly $1.8 billion from Madison Marquette and Hoffman & Associates.
According to the CO, the office portion of the site was 93.4 percent leased to 18 tenants in February. The largest renter was Williams & Connolly, a law firm, which locked in 313,000 square feet of space in a deal last year. In total, the office space at the property spans one million square feet.
Multifamily and retail at The Wharf were 90.8 percent and 92.1 percent leased, respectively.
Eastdil Secured brokered the deal for PSP during the refinancing and the majority takeover.
For a while now, Washington, D.C. has dominated the market in terms of rental interest. In the first quarter, a report from RentCafe found that the metro was the top city for activity, seeing an 18 percent surge in favored listings, with saved searches falling by 13 percent. The area is drawing interest from apartment hunters in the Philadelphia, New York City and Baltimore areas, according to RentCafe.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
