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Monday, 15 August 2016

TIAA Lends $400Mln Against Washington, D.C., Office Properties

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Commercial Real Estate Direct Staff Report

TIAA has provided $400 million of mortgage financing against five office properties with about 1 million square feet in the downtown and East End areas of Washington, D.C.

Tishman Speyer Properties owns the properties: 1201 F St. NW near Ford's Theater in the East End, and 1717, 1730, 1747 and 1775 Pennsylvania Ave. NW in downtown.

The New York company used proceeds from the TIAA loan to retire $290 million of financing against three of the properties that was securitized through LB-UBS Commercial Mortgage Trust, 2007-C2, and scheduled to mature in January. The CMBS loan, commonly referred to as Tishman Speyer DC Portfolio II, became open to prepayment last month. It was senior to $146 million of mezzanine financing.

The Pennsylvania Avenue properties, which have a combined 779,615 sf and were largely constructed in the 1970s, sit next to each other.

Financial data are available only for two of the properties, 1717 Pennsylvania with 200,430 sf and 1747 Pennsylvania with 166,429 sf. The two generated a combined $12.1 million of net cash flow last year. That compares with $12.4 million in 2014, according to servicer data compiled by Trepp LLC.

Tenants include the General Services Administration, with 46,126 sf at 1717 Pennsylvania and 121,424 sf at 1775 Pennsylvania; Chemonics International Inc., with 26,888 sf through at 1747 Pennsylvania, and the Nuclear Energy Institute, with 50,861 sf at 1201 F St.

The GSA pays annualized rent of $7.9 million, or $51.03/sf. In contrast, the average effective rent for the 30 million-sf downtown area is $44.17/sf, according to Reis Inc., which projects that the rent will increase by about 4 percent through 2017.

The buildings along Pennsylvania Avenue include four parking garages with 806 spaces, while the 16-year-old building at 1201 F has a parking garage with about 164 spaces.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Washington
  • States: District of Columbia
  • Sector: Office
  • Subject: Mortgages/Financing (MOR)
  • Deal Name: LB-UBS Commercial Mortgage Trust, 2007-C2
  • Company: The Bernstein Cos., Transcontinental Realty Investors Inc.
  • Valuation: More than $150 million
  • Private: No
  • bloombergDealName: LBUBS 2007-C2
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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