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Office vacancies still on the rise in D.C.
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Monday Properties pulls in $207M for DC-area offices
CMBS funding follows foreclosure threat on one of the two buildings
A major developer in Washington, D.C. nabbed a loan for two of its office properties in the area, one of which faced foreclosure just months ago.
Monday Properties scored $207 million in commercial mortgage-backed securities financing from Citi Real Estate Funding for the two properties, the Commercial Observer reported. Both properties are being backed by five-year, fixed-rate loans that will allow Monday to recapitalize the buildings.
The largest of the two office assets is at 1812 North Moore Street in Arlington, Virginia. After being the original lender there, Citi refinanced the property for $173 million.
Four months ago, mezzanine lender RBC Real Estate Capital Partners initiated a UCC foreclosure for the 35-story, 581,000-square-foot office building. An auction was even scheduled for the week before Christmas before Monday averted the crisis by landing the financing.
The property is close to 90 percent leased, Monday managing partner Anthony Weistrich told the Observer, leasing close to 60,000 square feet in the last four months alone. Nestle USA is the building’s anchor tenant with 325,000 square feet of space, followed by Humana and health tech firm Cerner.
The other property involved is Shirlington Gateway. Citi agreed to refinance the property for $32 million back in December before ultimately folding it into the CMBS deal. The 206,000-square-foot building is located at 2800 Shirlington Road in Arlington.
Monday has invested more than $16 billion worth of capital in terms of gross asset value and has executed transactions involving more than 36 million square feet; the firm owns and operates 5 million square feet of office, multifamily and mixed-use space.
In 2022, the investment firm paid $131 million for a 344-unit apartment building in downtown Stamford, Connecticut, marking Monday’s second multifamily play in the Connecticut city.
Office vacancies in the D.C. metro remained on the rise in the first quarter, according to Colliers. The vacancy rate in the market was 19.4 percent, an all-time high for the area.
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