Mid Atlantic Real Estate Journal — June 14 - 27, 2013 — A
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Miles, Mudd and Geiger represent one of DC’s leading landlords Cassidy Turley secures $124 million in permanent financing for Paramount’s 425 Eye Street, NW
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ASHINGTON, DC — CassidyTurley , leading commercial
Dente Restaurant and a wine and spirits shop. “Paramount Group has been a leader in the development of the Mt. Vernon Triangle,” said Miles, executive manag- ing director of Cassidy Turley. “Their handsome new design of the building’s exterior and main lobby made an important statement about the quality of development expected for Mt. Vernon Triangle.” “Lenders were attracted to Paramount’s sponsorship,” said Mudd, executive manag- ing director of Cassidy Turley. “Paramount has an enviable record of development and investment in the Washington area, including the Waterview Building in Rosslyn, as well as Liberty Place, 1899 and 2099 Pennsylvania Ave., among others.” “We are delighted that this future.” The company’s acquisition of Hunting Point illustrates its strategy, Adler pointed out. In partnership with The Laramar Group, Lubert-Adler purchased this 530-unit com- plex just south of Old Town Alexandria for $78 million, or about $147,000 per unit, from the Virginia Department of Transportation (VDOT). VDOT acquired the property via eminent domain in 2002 to allow for construction of the new Woodrow Wilson Bridge, which required demolition of one of the three towers. Despite its superior loca- tion, unit interiors and ame- nities have been untouched for years, and rents are 30-40 percent below market rate. “This was a flat tire that we can transform into a class A apartment community,” remarked Adler. “There is a sentiment in the market that multifamily properties are overpriced and there are no longer opportunities to generate attractive profits. We have a contrary view:
$124 million in financing has been secured for further in- vestment in 425 Eye St., a pivotal office property within the region,” said Albert Be- hler, president and CEO of Paramount Group. “Para- mount Group is committed to the Washington, DC, of- fice market and to delivering superior service to our ten- ants. This additional financing for our property will ensure we maintain 425 Eye St. in at the very highest standard, consis- tent with entire Paramount portfolio of nationally signifi- cant office properties. We are grateful to the Cassidy Turley team for their stellar service in this matter.” After a competitive bidding process, Bank ofAmerica was selected to be the lender based on their attractive terms on a five year, floating rate loan. n stabilized assets may be over- priced, but value-add assets are on the rise because of the overleveraged environment since 2008. We believe we have demonstrated this thesis through the portfolio we have assembled in today’s market conditions.” Over the next three years, the new ownership plans to invest about $14 million in capital improvements includ- ing new lobbies, corridors, rooftop entertainment areas, building systems, mechanical repairs, façade improvements, and riverside pool amenities. Individual apartments will be renovated with new kitchens, baths, windows, flooring, and other upgrades. Hunting Point enjoys a com- manding view of the Potomac River and the new Wilson Bridge, which is easily acces- sible from the property. Just minutes away by car – and also reachable by scenic wa- ter taxi – is the new 300-acre National Harbor mixed-use complex on the Maryland side of the Potomac River. n
real estate services provider in the U.S., announced that Christian Miles, Philip Mudd and Bradley Geiger have se- cured $124 million in perma- nent financing for Paramount Group’s 425 Eye Street, NW, in Washington, DC. The 365,800 rentable s/f class A office building is 86% leased, a large portion of which is to the Board of Veteran’s Af- fairs on a long term basis. The property underwent a major renovation in 2010, including new electrical and mechanical systems and a new exterior glass and a granite curtain wall. It has achieved LEED EB Gold designation, and has new and expanded ground- floor retail, which is leased in part to chef Roberto Donna’sAl ALEXANDRIA, VA — With the $78 million acquisition of Hunting Point, a 530-unit apartment complex on Po- tomac River in Alexandria, VA, Lubert-Adler of Phila- delphia, PA has amassed a multifamily portfolio valued at approximately $2 billion for its domestic institutional investors. The company’s Fund VI, VI-A and VI-B co-investment pool, launched in January of 2010 with over $1 billion in equity, has now acquired, among several asset classes, some 70 multifamily proper- ties totaling over 20,000 units, valued at over $2 billion. Most of the assets were acquired in the last 18 months. “In 2010, we made a stra- tegic decision based on the belief that multifamily rental apartments provide one of the best opportunities to create risk-adjusted superior re- turns, because a substantial portion of the overall return is in the form of current yield,” explained Dean Adler , CEO and co-founder, Lubert-Adler
425 Eye Street, NW
Lubert-Adler acquires $78 million multi-family complex
Hunting Point
Partners, L.P. “We aimed for overall returns of 17-20 percent, with10-12 percent of that target coming from cur- rent yield.” “In order to execute that strategy, we sought out one-off middle-market acquisitions through local entrepreneurs, focusing on transactions that are too large for local opera- tors but smaller than those that would interest the very
large funds,” Adler went on. “Our goal was to buy assets opportunistically, preferably from sellers who are not in the everyday business of im- proving real estate, and then work with our local partners to increase current yield by renovating and reposition- ing the assets. Now that we have achieved our initial goal, we plan to continue this value-add program into the
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