WASHINGTON, DC—First Potomac finalized its financial housekeeping for the year, securing a $66.78 million loan for 11 Dupont Circle, the 155,713-square foot, nine-story office building it acquired in 2014 for $89 million from BlackRock Realty.
HFF's debt placement team, led by Sue Carras and Dan McIntyre, arranged the 15-year, fixed-rate loan with an insurance company separate account advised by an affiliate of Walton Street Real Estate Debt, in conjunction with KeyBank who will retain servicing on the transaction. Loan proceeds were used to finance the prior acquisition of the property.
The building is the poster child for First Potomac's investment strategy of the last few years of focusing on core buildings in the District. 11 Dupont is recognizable to just about every inhabitant of the city and the surrounding area.
Securing the mortgage was part of First Potomac's routine balance sheet activity. There has been a $64.2 million outstanding balance on the REIT's Jackson National Life loan, which was scheduled to mature in August 2015. That loan was secured by the Rumsey Center portfolio, which sold in late July for $15.75 million. The loan was temporarily prepaid with a draw under its unsecured revolving credit facility while First Potomac was in the process of putting a mortgage loan on 11 Dupont Circle, CFO Andy Blocher explained. "We have no additional debt maturing this year and limited debt maturities in 2016."
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