owner Hana Alternative Wealth Management of Seoul, Republic of Korea, has recapitalized the former debt and equity interests at NASA’s Washington, DC headquarters with a $275 million financing. Mezirovwhich provided the financing for Hana, announced the transaction on Monday, August 15.
Hana acquired the nine-story 605,900 sq ft leasable building at 300 E. St. SW in 2017. The property is managed by Ocean West Capital Partnersbased in El Segundo, California.
Proceeds from financing the property at a fixed rate of interest on debt repayable on an interest-only basis until the loan’s 2028 maturity date, which coincides with NASA’s lease. According to Mesirow, this lease is currently the sixth largest GSA lease in the country.
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Mesirow of Chicago acted as placement and administration agent for the funding. Cushman & Wakefield acted as an advisor to the borrower in designing the loan request and arranging the final engagement with Mesirow.
In a prepared statement, Nat Sager, President of Mesirow Capital Markets, highlighted the role of Mesirow’s Muni-Desk alongside CRE’s more traditional fixed income distribution and trading channels.
Not quite ready to start
The Washington office market has enjoyed three consecutive quarters of positive absorption as the flight to quality experienced in so many markets causes Class B and C properties to suffer, according to a second-quarter report from Cushman & Wakefield.
The Southwest submarket currently has an overall vacancy rate of 18.6 percent on an inventory of 12.2 million square feet. Year-to-date absorption was 277,000 square feet and 378,000 square feet are under construction. The average asking rent for Class A space is $53.34, according to Cushman & Wakefield.
Earlier this month, a joint venture by Turnbridge Shares and Fundamental Advisors LP completed the divestiture of a five-building, 860,000 square foot office portfolio in the Washington, DC metro area for $220 million. The buyer was GI partneron behalf of its Essential Tech + Science Fund.