FCP Sells Stake in 1101 Connecticut Ave.

WASHINGTON, DC-Federal Capital Partners has sold its stake in 1101 Connecticut Ave., NW for an undisclosed price to an unnamed buyer.

FCP acquired its interest -- which it also is not disclosing other than to say it is a majority interest -- in the building as part of a joint venture with Penzance in 2010. Penzance will continue to own the building with a new partner.

FCP's involvement with the building was typical for the company--it invested, it renovated, it refinanced and then it got out.

"When we purchased the interest in 2010 it was as a capitalization," Esko Korhonen, managing partner of FCP, tells GlobeSt.com. In March of this year, it refinanced the building with a $42 million first trust loan provided by SunTrust Bank, replacing a previous $35 million loan. "At that point we were able to make a distribution back to our partners," Korhonen said.

In the meantime it had leased up the property and then found its exit strategy via another recap with an "institutional style" player.

"It was good timing for us," Korhonen said. 1101 Connecticut is a 12-story, 187,879 square-foot office building located at the Farragut North Metro Station. FCP was represented by Cassidy Turley's Bill Collins, Paul Collins, Jud Ryan, Drew Flood and James Cassidy.