Hines Secures $300M to Refi Downtown DC Complex
Hines has obtained a major refinancing deal for one of the largest mixed-use developments in Downtown Washington, D.C.
The Houston-based company secured a $300 million loan from JPMorgan Chase (JPM) tied to CityCenterDC (CCDC), a 2.5 million-square-foot, mixed-use complex with more than 500,000 square feet of office space. The loan, arranged by Eastdil Secured, is collateralized by both the office and retail assets of the complex.
The five-year interest-only loan will go toward refinancing a previous $430 million loan also provided by JPMorgan, according to Hines executive Andrew McGeorge, who announced the deal on LinkedIn earlier this week.
The single-asset CMBS deal was challenging, given the large office component in CCDC, per McGeorge.
“Arguably one of the top mixed-use projects in the US, the refinancing efforts faced significant market headwinds, particularly in the office component,” McGeorge said in a statement emailed to Commercial Observer.
McGeorge added that Hines achieved the deal by marketing the property’s 100 percent leased offices, along with its more than 93 percent leased retail assets.
Law firm Covington & Burling has occupied the majority of CCDC’s office space since moving into the complex in 2014, filling 420,000 square feet across two buildings. Luxury brands such as Dior, Chanel, Louis Vuitton and Tiffany occupy some of the retail spaces. The Museum of Illusions opened at CCDC late last year.
Hines has made other moves in the nation’s capital in 2023. The company purchased a 154,000-square-foot office building, at 1050 17th Street NW, from The Lenkin Company for nearly $60 million back in April. Law firm Davis Polk & Wardwell moved in with an 82,000-square-foot lease soon after.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
Update: This story has been updated to reflect that Eastdil Secured arranged the financing on behalf of Hines.