Rubenstein Mortgage Capital Closes $42M Recap for DC Property

Proceeds will enable the borrower to complete a ground-lease buyout of the downtown office asset.

1801 L St. NW. Image courtesy of Rubenstein Mortgage Capital

Rubenstein Mortgage Capital, the debt investment platform of Rubenstein Partners LP, has provided a $42 million first mortgage loan to recapitalize 1801 L St. NW, a 200,000-square-foot office property in downtown Washington, D.C. A collection of several local real estate families is the long-term owner of the asset.

The note, originated by Rubenstein’s Ashesh Parikh, serves the borrower in retiring existing debt, completing a ground-lease buyout, as well as funding future leasing costs. The 10-story building has been mostly occupied by government tenants.

Delivered in 1988, the property includes 5,000 square feet of ground-floor retail space and five elevators, according to CommercialEdge data. The 0.6-acre corner site is situated within walking distance of the Farragut North subway station and several bus stops, while its central location offers access to a wide range of retail and dining options.

The global health crisis has put the office sector on shaky grounds, forcing a large portion of the workforce out of its purpose-built commercial space and into a domestic environment. Last December, Rubenstein Partners received a $114M refinancing loan for its Pennant Park office development in Atlanta, after spending four years on remodeling the six-building asset. Additionally, the real estate investment advisory firm—in a joint venture with Heritage Equity Partners—is in the process of developing 25 Kent, an eight-story office and manufacturing project in Brooklyn’s Williamsburg neighborhood.

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