HSBC Leads Acquisition Financing for Global Holdings’ $415M Washington Harbour Buy
By Cathy Cunningham and Christina Sturdivant-Sani August 1, 2018 2:41 pmreprints
Global Holdings Group sealed its $415 million purchase of Washington Harbour—a two-tower property located in the Georgetown neighborhood of Washington, D.C.—with a financing package led by HSBC, sources familiar with the transaction told CO.
The bank acted as agent and lead arranger in the deal, for a lender group that consisted of HSBC, Landesbank Baden-Württemberg and Bank of New York Mellon. The exact financing amount couldn’t be ascertained by press time.
Washington Harbour is a 562,105-square-foot mixed-use office, retail and residential property that consists of two towers at 3000 K Street NW and 3050 K Street NW.
The Washington Business Journal first reported news of the acquisition.
“Global Holdings is excited to expand its investments in the DC area with our acquisition of Washington Harbour. We are strong believers in the long-term success of this market, and unique institutional-quality assets like Washington Harbour present a great way to continue to broaden our office portfolio,” Eyal Ofer, the chairman of Global Holdings Group, said in prepared remarks. “We look forward to serving the Washington office tenancy, and to continue enhancing and supporting Washington Harbour and everything it offers to employees, visitors, guests and tourists in the larger D.C. community.”
The buildings are currently 98 percent leased to 31 tenants, including law firms Foley & Lardner and Kelley Drye & Warren and restaurants such as Fiola Mare, Farmers Fishers Bakers, Tony & Joe’s Seafood Place and Nick’s Riverside Grill. The property also includes a fountain in an area that transforms into a 12,000 square-foot ice skating rink in the fall and winter.
The acquisition marks Global Holdings’ third office property investment in the last two years. It previously purchased Nomad Tower at 1250 Broadway in Manhattan, and made a $100 million preferred equity investment in 25 Kent Avenue in Williamsburg, Brooklyn. The three properties represent a combined asset value of $1.4 billion. Washington Harbour is Global Holdings’ second purchase in D.C.; the firm already owns the Courtyard Washington Convention Center at 900 F Street NW.
HFF’s Stephen Conley, Jim Meisel, Andrew Weir, Matt Nicholson and Dave Baker represented Washington Harbour’s seller, Principal Real Estate Investors. Global Holdings purchased the asset free and clear of debt, according to an announcement from the brokerage.
Representatives for the lenders did not immediately return requests for comment.