Falcon Advises on $105,000,000 Refinancing of 1201 New York Avenue, Washington, DC.
In March 1999 Falcon Real Estate Investment Company, LP closed the purchase of 1201 New York Avenue on behalf of one of its clients. This was followed in November 2000 by the purchase of 1225 New York, which was originally built as an addition to 1201 but which had been under separate ownership and management. The two buildings were subsequently merged into a single property, with the combined property containing over 400,000 square feet of Class A office space just four blocks from the White House. For the last three years, the two buildings have been operated as a single property, but each building had separate financing and separate leases.
Under the $105,000,000 financing arranged with Credit Suisse First Boston, the old loans have been repaid, and there is now one loan secured by the combined building. In recent months Falcon has leased nearly 200,000 square feet of space in the combined building to such tenants as the Department of Homeland Security, the Office of Government Ethics, and the Federal Elections Commission, and finalizing these leases was critical to securing the new financing.
Commenting on the new financing, David Hill, Senior Vice President of Falcon said: “The combined building offers 33,000 square feet per floor, which is very attractive to large tenants. With the new leases and new financing, we have created a trophy asset with long-term stable income. At the same time, the very attractive interest rate on the new financing has significantly increased the cash-on-cash return to our client.”