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WASHINGTON, DC-Construction financing for the third office building of the Portals, a $1-billion, mixed-use project that is being created in stages to meet a scheduled 2010 completion date, has been secured. Chicago-headquartered Corus Bankshares Inc.’s Corus Bank has closed a $90-million loan for the development of the Portals Phase III, a 500,000-sf class A facility. The borrower is an affiliate of project developer Republic Properties Corp., which estimates that the total cost of development by the building’s completion date in 2006 will be in the neighborhood of $195 million.

Occupying a rare 11-acre site fronting the Potomac in Southwest Washington, DC with views of the Capitol and the Jefferson Memorial, the Portals is one of the largest mixed-use developments ever to grace the District. Upon its completion, the massive multifaceted project will encompass 1.8 million sf of prime office space spread out among five buildings, 125,000 sf of retail space, parking facilities to accommodate 1,200 vehicles, a performing arts theater, fitness facility and the recently opened 400-room Mandarin Oriental Hotel.

The Portals III will be a 10-story tower with the address of 1201 Maryland Ave. It will maintain its 500,000 sf of office space and ground-level retail offerings among 10 stories atop a four-level, 680-vehicle underground parking garage. Corus found the project to be a good investment, especially considering the triumph of the first two Portals office facilities and the luxury hotel. The 440,000-sf Portals I boasts the Federal Aviation Administration and other US government offices, and federal contractors as its tenants, and the 600,000-sf Portals II is home to the Federal Communications Commission and additional government offices.

“Corus’ experience in construction financing and ability to understand complicated loan structures facilitated the loan closing,” Corus Bank senior vice president John M. Barkidjija explains. “We were able to accommodate the borrower’s request for senior debt despite the lack of leases in place for the office space.

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