Prudential Provides $110M Fannie Mae Loan for Residences on the Avenues

WASHINGTON, DC—More details about the $196 million trade of Residences on the Avenue, a 335-unit apartment building in Foggy Bottom, have emerged.

Prudential Mortgage Capital Co. announced it provided a $110 million Fannie Mae loan to the company that acquired the building located at 2221 I St., NW.

"This asset's sponsorship, its location in Foggy Bottom, amenities and finishes all made this an extremely attractive transaction for us," said Chuck Meyer, a principal with Prudential Mortgage Capital Co., who led the transaction, in a prepared statement. Prudential was unable to return a call to GlobeSt.com in time for publication.

At the start of the year, the building's previous owner, Boston Properties, announced during its earnings call this week it had found a buyer. The 12-story building, which also has about 50,000-square feet of retail, traded for $585,075 per unit to the Kuwait sovereign wealth fund Wafra, although Boston Properties did not announce the buyer.

It did however tell listeners during the call that it would provide up to $6 million should the property's net operating income fail to achieve certain thresholds.

Then last month CEO Owen Thomas was speaking at the Citi Global Property CEO Conference and he told the audience that the property traded at a 4.1 cap rate.

Boston Properties maintains a significant presence in the DC area. As of Sept. 30, 2014, its 10.8 million square feet of properties was 96.1% occupied.