WASHINGTON, DC-Increasingly, as the recovery takes hold,commercial real estate lenders are encroaching on each other'sturf. Life insurance companies are offering longerterms, as are banks in many cases. CMBS, for itspart, is pricing close to, or even better than life. Thus theappearance, every now and then, of life insurance company financingthat stretches beyond the typical ten years.
The local market saw that with the 20-year, fixed-rate $181-million permanent loan a lifeinsurance company recently provided for 1000 ConnecticutAve., N.W. It also saw it with the $27.8 million, 15-yearterm loan Prudential Insurance Co. of Americarecently provided for 1666 K St., NW, a 12-story,286,000-square-foot office building on Farragut Square inWashington's DC's CBD. Cassidy Turley's Christian Miles,Philip Mudd and Bradley Geiger securedthe financing on behalf of 1620 K Street Associates LP. They also,as it happened, secured the $181 million permanent loan.
To be sure, there was more at play with this financing than justcompetitive factors, Miles tells GlobeSt.com. "This is afamily-owned building and the LTV is a very low 20%. Insurancecompanies love those kind of fundamentals."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
