$77M in Financing Secures DC Office Towers

WASHINGTON, DC-A $77.2 million financing package has been put in place for the acquisition of two class A office towers along the Anacostia River known as Maritime Plaza I & II. Commercial real estate capital intermediary Holliday Fenoglio Fowler orchestrated the financing deal for buyer Consortium Three LP, an affiliate of the Bernstein Cos. Together, the two new buildings provide for a total of approximately 345,700 sf of space. The funding comes in the form of a 10-year fixed-rate securitized loan courtesy of UBS Warburg.

"HFF selected a lender after an extensive bid process and ended up selecting a lender that the borrower had a previous relationship with," HFF senior managing director Bob Donhauser notes. "We were thrilled by how low the spread was for the LTV achieved." UBS Warburg has provided financing for several Bernstein affiliate endeavors such as the $13.4 million acquisition of the Greenbelt, MD based The Aerospace Building near NASA's Goddard Space Flight Center, in Greenbelt Maryland. Consortium III will take the Maritime Plaza properties off the hands of the Washington Gas Light Co., which, along with Lincoln Property, developed the two buildings in 2001 and 2003, respectively.

The two structures are part of the greater Maritime Plaza office compound that will ultimately feature an aggregate 800,000 sf of office space, as well as a 250-room hotel. The park occupies a 12-acre parcel at 12th and M streets within throwing distance of the Washington Navy Yard. Standing five stories tall, Maritime I, carrying a current assessed value of $36.3 million, offers 200,500 sf, while the four-story Maritime II--apparently still too young to have an assessed value on record with the District--offers 145,00 sf. Among the tenant roster for the two structures are such big names as Computer Sciences Corp, General Dynamics, Newport News Shipbuilding, Northrop Grumman and SAIC. The combined occupancy rate among Maritime I & II is 85%.

Source: GlobeSt
Author: Barbra Murray