WASHINGTON, DC—Last week we covered JOSS Realty's acquisition of Georgetown Plaza at 2233 Wisconsin Ave., NW, from Carr Properties for $26.8 million. More details of the transaction have emerged, namely about the financing JOSS secured to buy the 150,097-square foot, five-story office building that has a 79% occupancy rate.
Gideon Gil, Alexander Hernandez, Sridhar Vankayala and Alex Lapidus of Cushman & Wakefield secured a $24.5 million senior mortgage loan from Square Mile Capital Management LLC, which along with USAA Real Estate Co. launched a CRE loan platform a year ago, almost to the day.
It is three-year, floating-rate financing, with two one-year extension options.
"There was tremendous interest in this deal for a couple of reasons," Gil tells GlobeSt.com—its location in Georgetown, the value-add upside and the capital expenditures that the building would need.
"We had a variety of lenders from banks to CMBS to debt funds interested, and the client went with the provider that could provide the most flexible structure and maximum proceeds."
The facility is a custom structure for JOSS that provides financing for the capital expenditure as well as for the TI leasing commission. Convention lenders can do bits and pieces of this, Gil says, but they are unlikely to be able to underwrite a custom structure.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
