Refinancing Deal Makes Two Office Buildings Into One

WASHINGTON, DC-A joint $105-million refinancing package has been put in place for the office properties at 1201 New York Ave. and 1225 New York Ave., two class A offerings just a few blocks from the White House in the city’s central business district. Falcon Real Estate Investment Co., which acted on behalf of unnamed clients of London’s Strategic Real Estate Advisors Ltd., was on the receiving end of the loan appropriated by Credit Suisse First Boston. The deal allows Falcon to consolidate the separate financing arrangements on the two properties. Both 1201 and 1225 New York had been functioning as a single building accounting for about 415,000 sf of space, but with the combined financing, they are now officially one property. It was this single property that secured the loan.

The 305,000-sf structure at 1201 New York opened its doors to occupants back in 1987, and Falcon acquired it in 1999 for $81 million. Falcon followed up that purchase in 2000 with the $33-million acquisition of the 114,000-sf building next door at 1225 New York Ave., a structure that was built in 1993. According to District tax records, the buildings’ individual assessed values for 2004 come in at $82 million and $33.3 million, respectively.