Washington Metro Area REIT Lands $67M Loan for D.C. Office Buy
By Danielle Balbi August 31, 2015 5:25 pm
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First Potomac Realty Trust, a Maryland-based real estate investment trust, borrowed a $66.78 million loan from KeyBank and an insurance separate account to finance its acquisition of a nine-story office building in Washington, D.C., Commercial Observer has learned.
First Potomac purchased the 155,713-square-foot building at 11 Dupont Circle, from an entity listed as SC Dupont Fee, Inc. for $89 million in 2014, according to public records.
The acquisition financing, negotiated by HFF, carries at 15-year, fixed-rate term, a spokeswoman from the brokerage told CO.
The insurance separate account that co-provided the loan is advised by an affiliate of Walton Street Real Estate Debt. WSRED is an affiliate of private equity firm Walton Street Capital. Keybank (KEY) will maintain servicing on the transaction.
HFF Senior Managing Director Sue Carras and Director Dan McIntyre worked on the transaction.
The property is located in between D.C.’s residential and commercial neighborhoods with easy access to the Red Line metro station.
The building is 96 percent leased, according to HFF.
A spokeswoman for First Potomac Realty declined to comment. A KeyBank spokeswoman was not immediately available for comment and representatives for Walton Street Capital did not respond to inquires by press time.
