WASHINGTON, DC—Jair Lynch Development Partners secured a $34.8 million loan from Santander Bank at a seven-year term. JLL's Jon Goldstein, Wesley Boatwright and Mike Yavinsky helped secure the financing.
This is not a construction loan but Jair Lynch plans to use the proceeds partly for base building work and TI allowance, Goldstein tells GlobeSt.com. That is why the loan has the somewhat unusual term of seven years-it is structured as an initial three-year term with a four-year extension option. More typically such loans are structured at three-year initial terms with two-year extension options. "Banks will go out seven years but primarily if the sponsors do an initial three-year term and a couple of extension options," Goldstein says.
This structure gives the sponsor the best of both worlds, he says.
The bank felt comfortable with the structure because the 82,058-square-foot office building is 100 percent leased to investment-grade tenants, namely the District of Columbia government and CVS. "It takes a high-quality deal with this sort of rent roll to get a bank comfortable going with that length of an extension," Goldstein says.
Jair Lynch made a major investment in the H Street Corridor in 2011 when it purchased H Street Plaza, the 600 block fronting on the south side of H Street, NE, including the existing office buildings at 609 and 645 H Street.
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