What Lender Competition Means for Borrowers These Days

WASHINGTON, DC-Increasingly, as the recovery takes hold, commercial real estate lenders are encroaching on each other’s turf. Life insurance companies are offering longer terms, as are banks in many cases. CMBS, for its part, is pricing close to, or even better than life. Thus the appearance, every now and then, of life insurance company financing that stretches beyond the typical ten years.

The local market saw that with the 20-year, fixed-rate $181-million permanent loan a life insurance company recently provided for 1000 Connecticut Ave., N.W. It also saw it with the $27.8 million, 15-year term loan Prudential Insurance Co. of America recently provided for 1666 K St., NW, a 12-story, 286,000-square-foot office building on Farragut Square in Washington’s DC’s CBD. Cassidy Turley’s Christian Miles, Philip Mudd and Bradley Geiger secured the financing on behalf of 1620 K Street Associates LP. They also, as it happened, secured the $181 million permanent loan.