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REIT Mortgages Public Debt Headquarters

PARKERSBURG, WV-Government Properties Trust closes on a $31.8-million mortgage loan secured by two buildings called home by the federal Bureau of Public Debt.

By Brian K. Miller | Updated on March 22, 2005

PARKERSBURG, WV-Government Properties Trust Inc. has mortgaged the headquarters of the Bureau of Public Debt to the tune of $31.8 million. The Bureau of Public Debt is a division of the US Department of Treasury. The Omaha, NB-based REIT acquired one of the office buildings, an 81,000-sf facility completed in 2004, in November for $19.9 million. Phase II, an 81,000-sf facility currently being expanded to 183,000 sf, is scheduled for completion in the first half of 2006 at a cost of $22.6 million, according to company documents.The mortgage also has two parts. Tranche I is for $26.8 million, with interest-only payments through completion of the Phase II construction, scheduled for March 2006, and equal payments of principal and interest commencing in April 2006 at a fixed rate of 5.4%. The principal will be amortized from completion of Phase II over a period of approximately 20 years. The maturity date of tranche I is March 15, 2021.Tranche II is for $5 million with interest-only payments through year 10, reflecting the combined Phase I and II General Services Administration lease term, at which point the tranche may be prepaid at par. tranche II has a fixed rate of interest of 5.75% and may be extended annually until the maturity date of tranche I.Government Properties Trust invests primarily in single tenant properties under long-term leases to the U.S. government. of March 1, 2005, the company owned 627,000 sf in 12 properties valued at approximately $155 million.

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