WASHINGTON, DC-Philadelphia, PA-based proprietary asset management company Resource America Inc. has arranged the $45.5 million recapitalization of the 218,000-sf Evening Star Building in downtown Washington, DC with WestWind Capital Partners LP. Resource America acted on behalf of Germany-based fund manager KanAm Grund Kapitalanlagegesellschaft MBH.

At the close of the transaction, the profit for Resource America will be $30 million in cash and an additional $15.5 million in the form of a loan receivable. “That this transaction will not only allow Resource America to monetize a substantial part of its investment relating to the Evening Star loan, but will also facilitate Resource America’s effort to develop its proprietary asset management model,” says Resource America senior vice president of real estate Alan Feldman.

Located at 1101 Pennsylvania Ave., the Evening Star was developed in 1895 and originally served as the home of the Evening Star Newspaper before the Department of Justice moved in as the lead tenant in 1960. Owners submitted the property to a massive renovation that was completed in 1989 and Resource America acquired the building in 1998 for $85.5 million. Today, the class-A property is home to such tenants as the Center for Global Information Technology, the Education for Peace in Iraq Center, the Inter-American College of Physicians & Surgeons Inc., and Lyon Dell Chemical Co.

The letter of intent behind the recapitalization also incorporates a formal purchase agreement, although Resource America will stay on board as the property manager after official completion of the disposition. While the historic property has a 2003 assessed value of $102 million, the value put in place for the purpose of recapitalization was $107.5 million.

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