$101M Secures 1101 K

WASHINGTON, DC-JBG Cos. has secured $100.5 million in financing for 1101 K St., NW, a 310,825-square-foot office building in the East End. The building is owned by a joint venture between JBG Cos. and Rockwood Capital, LLC, which delivered it 2007. The financing replaces a construction loan with Bank of America with a three-year adjustable rate loan with Helaba–Landesbank Hessen-Thuringen Girozentrale.

The 65% loan-to-cost financing will provide funds until the asset is stabilized. Tenants in the building include FTI Consulting, Brunswick Capital, and Brasserie Back. In January JBG announced that it had inked a total of 70,325 square feet of leases with the DC Bar, Lazard Freres & Co. and the Information Technology Industry Council, represented by Cassidy & Pinkard Colliers’ Phillip Thomas, Richard Tonner, and Kerri Mulligan Salih.

The deal is welcome news to the DC real estate community, which has seen credit dry up for even well-stabilized properties. Large sized deals over $100 million are even more rare. In November, Connecticut & K Assoc. closed on $194 million in construction financing for 1000 Connecticut Ave., a 12-story, 383,392-square-foot trophy office building under development in the city’s CBD. Philip Mudd, Christian Miles and Jon Goldstein of Cassidy & Pinkard Colliers arranged the financing, provided by a consortium of five or so institutions led by Chevy Chase Bank. There have been few similar sized such financings since then. HFF, which helped to secure JGB’s loan, did not return a call to GlobeSt.com.