Finance  ·  CMBS

Owner of FEMA HQ Extends $130M CMBS Loan

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The Donohoe Companies has extended a $130 million commercial mortgage-backed securities (CMBS) loan on a two-block office complex that’s home to the Federal Emergency Management Agency (FEMA) in Washington, D.C.

The loan on the 725,317-square-foot Federal Center Plaza was set to mature in February 2024, but the newly-negotiated terms include a two-year maturity extension with an option to extend for another 12 months, according to an alert from CMBS data firm Trepp.

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The property, developed by Donohoe Companies in 1981, consists of two eight-story office buildings at 400 and 500 C Street SW, the latter of which is fully occupied by FEMA. The General Services Administration (GSA) renewed the 303,384-square-foot lease in 2021, and its term runs through 2027. FEMA occupies another 162,000 square feet in the second building.

The loan was originated in 2013 and placed in the COMM 2013-CR6 CMBS conduit deal, when the property was valued at $309 million. It now makes up over 54.2 percent of the remaining collateral behind the deal.

The GSA previously leased the entire 400 C Street SW as well, which served as an extension of the Department of State’s headquarters at 2201 C Street SW, according to the 2013 prospectus. That lease expired in 2018, and the GSA reduced its footprint to the current 209,000 which is occupied by FEMA and the U. S. Agency for International Development. Another 15,000 square feet is occupied by retail tenants, while the balance remains available.

Iron Hound Management Company’s Chris Herron and Kevin Thompson negotiated the deal on behalf of the borrower, who contributed a new equity infusion as part of the deal, which will go towards building improvements.

Donohoe Companies did not immediately respond to requests for comment.

Chava Gourarie can be reached at cgourarie@commercialobserver.com.