Kairos Lands $38M Refi for Discounted D.C. Office
Harbor Group International provided the senior loan for a 12-story office with 180,000 square feet
By Nick Trombola July 15, 2025 2:50 pm
reprints
An investment company based in Southern California has secured a solid refinancing deal for an office building on the opposite side of the U.S.
Kairos Investment Management landed a $38.3 million senior loan from Harbor Group International (HGI) for 1250 I Street NW, a 12-story, 180,000-square-foot office in Washington, D.C.’s East End. Newmark‘s Nick Scribani and John Caraviello arranged the loan.
The loan will refinance existing debt and fund improvements such as a tenant amenity suite on the top floor designed by Gensler, along with a lobby, a gym, a bike room and valet upgrades.
“We’re seeing renewed momentum in the Class A office sector, particularly for properties that offer strong amenities and prime urban locations,” Michael Nathan, HGI’s chief investment officer for office assets, said in a statement. “This financing supports a thoughtful renovation plan that aligns with our debt strategy of lending on assets with long-term demand fundamentals and partnering with high-quality sponsors.”
Kairos acquired the building about half a mile northeast of the White House from DSC Partners in 2023. As is all too common with D.C. office assets these days, Kairos purchased the property at a significant discount — just $36 million compared to the $100 million that DSC paid for it five years previously.
Although the building’s occupancy rate was not immediately available, Kairos claims to have leased a “significant portion” of the property since its acquisition, with more to come in the wake of the capital improvements. Current tenants include the nonprofits Center for Science in the Public Interest and the Environmental Working Group, which separately inked deals for 11,500 square feet and 15,331 square feet, respectively, in 2021.
HGI meanwhile is still coming down from the high of its $250 million sale of Dulles Green apartments in nearby Fairfax County, Va., to Bridge Investment Group in October. The deal was among the largest, if not the largest, multifamily deals across Virginia last year.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
