Helaba Refis DC Office Asset with $82M Loan
By Andrew Coen August 22, 2022 12:00 pm
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U.K.-headquartered Grosvenor has nabbed an $82.1 million debt package to refinance an office property in Washington, D.C., Commercial Observer can first report.
Helaba provided the first mortgage loan for Grosvenor’s 1500 K Street NW. The privately owned international real estate company completed a $20 million renovation of the 262,190-square-foot building in 2018 that added new sustainability features.
An Eastdil Secured team led by Nicholas Seidenberg, Matt Brody, Nick Carpenter and Caroline Klinedinst arranged the transaction, which was Helaba’s first loan to Grosvenor.
“We are very pleased with Grosvenor’s confidence in us as a financing partner,” Rick Lavrich, head of real estate finance U.S. at Helaba, said in a statement. “We look forward to many more deals with Grosvenor in our target markets in the US and around the world.”
The Grosvenor upgrades included a transformed lobby that infused the space with light and air along with a new fitness center and tenant lounge. It also installed an HVAC system with Minimum Efficiency Reporting Values 13 plus filters that help produce lower energy consumption as well as a new roof and rooftop lounge.
Constructed in 1928, the 11-story property overlooks McPherson Square near downtown Washington, D.C.’s central business district and is two blocks north of the White House. It achieved certifications from Leadership in Energy and Environmental Design and the International WELL Building Institute after the recent improvements, which aligns with Grosvenor’s commitment to achieve net zero operational carbon emissions by 2030.
Anchor tenants at 150 K Street include law firm Faegre Drinker Biddle & Reath, National Park Foundation and the Lawyers Committee for Civil Rights. CommonGrounds Workplace signed an 11-year, 29,509-square-foot lease at 1500 K Street in July 2019 to occupy the entire second floor and ground floor retail spaces.
“The deal underscores the enduring appeal of high-quality, well-located office buildings,” Graham Drexel, chief financial officer of Grosvenor’s North American urban property business, said in a statement. “We executed a thoughtful improvement plan for the property, which added significant value in a competitive market for Class A space by positioning us to benefit from local office absorption trends.”
Andrew Coen can be reached at acoen@commercialobserver.com.
