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Historic Row MXU
$35,320,000 Recapitalization Financing
Washington, DC | August 2022
Thorofare Capital has funded a $35,320,000 intermediate-term, whole loan for the recapitalization of Historic Row Mixed-Use in the East End sub-market of Washington D.C.
After an extensive and competitive bidding process in 2001, sponsor was selected over many other highly qualified developers by the GSA to acquire the purposes of renovation and redevelopment of the F Street Historic Row. The re-development consisted of an extensive historic renovation of buildings fronting F Street, vertical construction of a new office tower to the south of the historic buildings and conversion of nine high end luxury apartments. The four historical buildings were seamlessly connected to each other in 2001 and the new glass office tower was added in 2004.
The subject is located within four blocks of four Metrorail stations with the nearest being Gallery Place-Chinatown, which serves the Green, Yellow, and Red Lines. The other three stations within proximity include the Metro Center, Judiciary Square and Archives-Navy Memorial stations. These four Metrorail stations collectively serve all six Metrorail lines in the District. In addition, the subject’s live/work/play location is near the Capital One Arena, the National Portrait Gallery and it is within walking distance of many other museums and entertainment venues located along the popular F and 7th Street Corridors.
The office square footage consists of space on the 3rd and 4th floors of the Le Droit Building (formerly Spy Museum office space) that is break-and-beam in nature and office space in the glass tower for floors 5 through 8. This office space has floor-to-ceiling windows, outdoor terraces, and a rooftop. The total office square footage is 66,235. The retail stretches the entire ground and 2nd floor of the Adams, 812 F Street, and Le Droit buildings. The property has a total net rentable area of 127,180 square feet across both the commercial and multifamily spaces. The subject’s residential component consists of nine apartment units located within the third to sixth floors of the Warder Building.
Thorofare provided an interest-only, three-year initial loan term, followed by two optional extensions subject to performance tests and business plan completion milestones. The flexible, portfolio loan includes structure around equity-funded lease up costs for TIs, LCs and carry reserves through stabilization.
The sponsor is a local, experienced developer, owner, and operator. The privately held investor has a current portfolio of more than 200 properties, 10 million leasable square feet and more than 5 million square feet of developable real estate in its pipeline. The sponsor has owned and operated twenty-six mixed-use buildings since the 1960s in the East End submarket.