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WASHINGTON, DC-In a deal valued at $76.6 million, Trizec Properties has taken over the majority ownership interest in the class A office facility at 2001 M St. The Chicago-based REIT bought out BCSP II Washington Mortgage Holdings LLC, which had held the property in a joint venture with a metro area investment entity.

As part of the transaction, Trizec assumed an existing debt on the property, and immediately refinanced the mortgage through a $44.5-million, 10-year non-recourse loan attained at a low 5.25% fixed interest rate. The deal leaves Trizec with near full ownership of the property. A Trizec spokesperson tells GlobeSt.com that, “49.5% equity interest plus some subordinated debt gives us a 98% economic interest in the property.” The majority interest did not go to market, he notes. Instead, the deal was initiated between the two parties, which had worked together on other deals in the past.

Developed in 1987, 2001 M St. sports a coveted corner location in the city’s central business district, as well as a current assessed value of nearly $52.5 million, as calculated by the District of Columbia. The nine-story building is fully occupied and boasts international accounting firm KPMG as its lead tenant with 211,000 sf of space under lease through 2011.

The granite structure also features a two-story underground garage and ground-level retail space that includes a branch of the US Post Office. For Trizec, 2001 M St. constitutes a good fit for a portfolio of premium facilities concentrated in seven major metropolitan cities across the US.

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