A $23.2 million senior loan commitment from PCCP LLC (formerly Pacific Coast Capital Partners LLC) has paved the way for the acquisition and redevelopment of 2055 L Street NW, an office condominium located in Washington, D.C.’s central business district (CBD).
The borrower/property owner is a joint venture between Monument Realty and Angelo Gordon & Co., which acquired the asset in December 2010 in an all-cash deal. PCCP’s financing will replace equity used for the acquisition.
The loan also will enable the joint venture to begin a six-month rehabilitation of the 102,000 sq. ft. condominium office portion of the seven-story, 237,000 sq. ft. building.
The condominium unit purchased by the Monument Realty/Angelo Gordon joint venture consists of the building’s top three floors, the ground level retail, and the entire parking area. The building was built in two phases from 1963 and 1965. There are also two subterranean levels of parking consisting of more than 110 spaces.
The Class-B+ property was historically owned by Verizon and predecessor companies and used for general offices as well as a telephone switching center for downtown Washington, D.C., which remains in the building.
“The owner plans to renovate the property to position it as a quality Class-A asset,” says John Randall, senior vice president at PCCP, a real estate private equity firm with four offices located in New York, San Francisco, Sacramento and Los Angeles.
“The overall competitive vacancy rate in the CBD is approximately 6.4 percent. Once the renovation is completed, its quality and key location will be desirable to high‐profile law firms, lobbyists, and non‐profit organizations and associations,” adds Randall.
The renovation includes renovating the building’s entrance and lobby, refurbishing and enhancing the façade, providing a new HVAC system and other interior system upgrades.
2055 L Street is located one block north of K Street, and approximately four blocks from Dupont Circle, a key crossroads for social and commercial activity in the district. Three different subway lines are located within three blocks of the property.
PCCP has more than $6 billion under management in multiple closed-end funds and joint ventures with institutional investors.