Bank of America Provides $31M in CMBS Financing for 2 DC Office Buildings
The Modell family has received $31.2 million in financing for its acquisition of two Washington D.C.-based office buildings from EDG Corporation, Commercial Observer has learned.
Savills secured a 10-year, fully interest-only, nonrecourse CMBS financing package provided by Bank of America for the buyer.
The two Class B properties are located at 1612 K Street, NW and 1319 F Street, NW.
Savills solicited quotes from a variety of lending sources before facilitating the deal with Bank of America.
“Both buildings are in great locations and are well-maintained,” Matt Brody, Savills’ senior managing director, told CO. “We had a lot of interest from numerous lenders, namely CMBS, life companies and banks.”
The 83,000-square-foot 1612 K Street building was built in 1958 and is situated in the heart of D.C.’s central business district, just a block from Farragut Square. The 65,000-square-foot 1319 F Street building is close to the White House and a couple of blocks from the Metro Center station.
According to Brody, the financing was strictly an acquisition loan. No capital expenditures or leasing dollars were needed as the properties are already stabilized.
“The Savills team is grateful to both the Modell family and their asset manager, BEB Capital, for this opportunity, and we are proud to have successfully executed on the goals of our client,” he said.
The Savills Capital Markets team representing the borrower was led by Brody and Senior Managing Director Lindsay Stroud.
Savills Vice-Chairman and Co-Regional Manager Bill Quinby, Corporate Managing Director Richard Siegel and Managing Director Ken Biberaj represented the seller in the acquisition. BEB Capital represented the Modell family as their adviser and agent on the purchase.
“At BEB Capital, our philosophy has always been to treat assets, whether owned by us or managed for a third party, as our own,” Keyvan Ghaytanchi, BEB’s chief operating office and general counsel, told CO. “There were numerous challenges in connection with completing this transaction but we had an amazing professionals, including our advisors at Savills, as well as our internal team which made this transaction possible.”