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WASHINGTON, DC-Cassidy & Pinkard Colliers just closed on a moderately sized mezz loan around $10 million, placing it for 840 First St., NE–a 248,576-square-foot Stephen Goldberg office building in NoMA. Cassidy & Pinkard Colliers declined to discuss specifics about the pricing or the transactions, though, other than to say this: the successful placement of the paper is illustrative that lenders are growing bolder in taking risks.

To be sure, this loan is hardly that frightening, unlike, say a construction finance transaction. The class A 840 First St. is fully leased to an investment grade tenant–CareFirst. The lender is an overseas financier.

That said, the property is located in a submarket that is overbuilt and increasingly, under occupied, Cassidy & Pinkard Colliers David Webb tells GlobeSt.com. Webb, along with Jamie Butler, arranged the financing.

The dynamics of the mezz market have not changed that dramatically in the last six months, Webb says. “We still have a large number of lenders looking to place mezz debt in one of two categories: low- to mid-teens returns looking for a relatively safe investment and 18% to 20% range looking for accrual returns, based on higher risk.”

Still, though, given the dynamics of the capital markets, the mezz players have been keeping risk exposure to the minimum, which makes this transaction a possibly telling one, Webb says.

“When a deal gets done in a market like NoMa–where there is a lot of concern about oversupply and vacancy–it shows that at least some lenders are willing to take on more risk.”

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