NEW YORK—Savanna has completed the sale of a senior interest in a $157.7 million note secured by three Class A trophy-quality office buildings, totaling 1.4 million sq. ft. The buildings are part of a larger 10-building portfolio located in the Rosslyn section of Arlington, VA, owned by a joint venture between Monday Properties and Goldman Sachs’ U.S. Real Estate Opportunities Fund.
The transaction was arranged by Nicholas Seidenberg, Collins Ege, Sean McDermott, Clint Frease and Philip McKnight of Eastdil Secured. Savanna was represented by the law firm of Cole, Schotz, Meisel, Forman & Leonard P.A.
Savanna acquired a part of the larger first mortgage, collateralized by the Rosslyn Portfolio at a discount to par value, in a direct transaction with a Wall Street investment bank seeking to recapitalize its balance sheet in 2008.
The $157.7 million note has been split into a junior and senior interest. Savanna will retain the $76.7 million junior note, with the $81 million senior note piece sold in this transaction to a separate account managed by Apollo Global Real Estate. The underlying assets are stabilized, trophy office buildings. The borrower is Monday Properties in Washington, D.C.
“This sale’s proceeds have paid off the bank seller financing we utilized to acquire this position and allowed us to hold the remaining balance to maturity, guarantying a great return for our investors,” said Tom Farrell, senior associate at Savanna.
The first property, located at 1000-1100 Wilson Boulevard, is comprised of two interconnected high-rise office towers totaling 1.1 million sq. ft. The third property, located at 1101 Wilson Boulevard, is a 19-story, 326,000-sq.-ft. Class A high-rise office building.
Notable tenants in the portfolio include Raytheon, Aerospace Industries Association, Sands Capital Management, SRI International and the U.S. Department of Labor, among others.