Done Deals: HFF arranges $36M in financing for 1401 K Street in Washington, D.C.

Tuesday, October 7, 2008

HFF arranges $36M in financing for 1401 K Street in Washington, D.C.

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged $36 million in financing for 1401 K Street, (above centered photo) a 124,706-square-foot Class A office building in Washington, D.C.

HFF senior managing directors Bill Asbill (top right photo) and Bob Donhauser (ltop left photo) and director Cary Abod (middle right photo) worked exclusively on behalf of Guardian Realty Investors, LLC to arrange the five-year, fixed-rate financing throu

gh AIG Investments.

The loan proceeds were used to acquire the property and establish reserves for future tenant improvements, leasing commissions and capital expenditures. HFF will service the loan.

“AIG Investments did a great job of accommodating a very tight closing schedule,” said Abod.

Located in the K Street corridor of Washington, D.C. on Franklin Square, 1401 K Street is within walking distance of the McPherson Square Metrorail station, the Red Line at Farragut North Metrorail station, The White House, the Treasury Department building and the Department of Commerce building. The property was renovated in 1997.

“K Street, which provides a well-known and prestigious location within Washington, D.C., attracts prominent lobbying groups, law firms, private and government-related organizations and others, and demands premium rents due to the convenient location and minimal vacancy,” Asbill added. “The rental rates are significantly below market which should result in significant growth in the cash flows.”

Guardian Realty Investors, LLC and its affiliates own and operate 49 office buildings totaling in excess of 3.5 million square feet in Washington, D.C., Northern Virginia and suburban Maryland. The company has been acquiring, developing, financing, leasing and managing office buildings for over 40 years.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

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