NASA HQ Lands $275M Financing

reprints


Hana Alternative Asset Management and Ocean West Capital Partners, the joint venture that owns NASA’s Washington, D.C. headquarters, have secured $275 million in refinancing for the property.

The 597,253-square-foot building, located at 300 E Street SW and known as Two Independence Square, was built in 1992. NASA has called it home since the start, last renewing its lease in 2011. It is the sixth largest lease with the federal General Service Administration in the nation.

SEE ALSO: RREAF Holdings, DLP Capital, 3650 REIT Snap Up Sunbelt Portfolio for $500M

Cushman & Wakefield arranged the financing through financial services-firm Mesirow.

“We evaluated a variety of financing alternatives for this asset, and the approach and creativity offered by Mesirow was unique and far superior to other options,” Russ Allegrette, CEO of Ocean West Capital Partners, said in a prepared statement. “In a tough market, Mesirow delivered on their initial guidance.”

The financing allows the joint venture to recapitalize equity in the building and make debt-only payments until 2028, which is when NASA’s lease expires.

“Executing in today’s debt markets presents a degree of challenge that we are proud to have met through close partnership and collaboration across several unique facets of the Mesirow franchise, including our muni desk and the more traditional CRE fixed income sales and trading channels,” Nat Sager, president of Mesirow Capital Markets, said in a prepared statement. “We are extremely pleased by the end result and the satisfaction it provided to the client and our institutional fixed income investors.”  

Keith Loria can be reached at Kloria@commercialobserver.com.