New York-based JOSS Realty Partners received a $24.5 million senior mortgage loan from Square Mile Capital Management to revamp a recently purchased Washington, D.C. office asset, Mortgage Observer has first learned.
The three-year financing, with two one-year extension options, is backed by the five-story, 150,097-square-foot boutique office building Georgetown Plaza.
The property, at 2233 Wisconsin Avenue NW, is 79 percent occupied, according to Cushman & Wakefield, which advised JOSS on the deal.
The building was constructed in 1964 and renovated in 2007.
“Lenders were attracted to the property’s location in the Georgetown submarket and the diversity of tenants in place,” Gideon Gil, managing director at C&W, said in a statement to Mortgage Observer. Tenants include MedStar Georgetown Medical Center and Children’s National Medical Center, according to C&W.
Mr. Gil as well as C&W colleagues Alexander Hernandez, Sridhar Vankayala and Alex Lapidus, served as exclusive advisors to the landlord, which purchased the building for $26.8 million earlier this month.
JOSS intends to spend about $1 million on improvement at the building, in a bid to attract tenants that can pay higher rents, according to a report from the Washington Business Journal.