WASHINGTON, DC-More data points are emerging about JBG Cos.’ recent $101.5-million transaction in which it acquired a stake in a three-asset portfolio. One of those properties was 1600 K St. and the transaction’s broker, Cassidy Turley is now reporting that it has secured $23 million in debt financing for the 86,606-square-foot office building. A life insurance company provided the five-year, fixed-rate loan to the owners, JBG and ICG Properties, according to Cassidy’s John Campanella.
Life companies have traditionally had a strong presence in the DC market, particularly for solid assets, which is just about anything on K Street. So news that a life company, which Campanella declined to identify, participated in the deal is not surprising. However, he notes, it was not a foregone conclusion. Debt financing in the DC area is being provided by a surprisingly diffuse group of lenders this go around.
Specifically, Campanella points to at least six deals he has in the pipeline that he hopes to close within a matter of days or weeks. “They are with all different types of lenders,” he tells me. In general, “we are doing deals with life, CMBS shops and domestic and offshore banks. Not one particular player or category of player dominates, though, which has been interesting. We are seeing the business spread around.” Lenders are also more willing to be creative in their financing, he adds. “The deals I am closing are a combination of traditional debt deals and a few interestingly structured ones.”
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