Mission Capital Advisors Debt & Equity Finance Group has arranged $24.6 million of first-mortgage bond financing from CGA Capital on behalf of Friedman Capital and an insurance company partner for the acquisition of 810 5th Street NW, a newly renovated property in the East End submarket of Washington, D.C.
Media Contact: Amanda Ferraro Beckerman
FOR IMMEDIATE RELEASE
Mission Capital Advisors Arranges $24.6M in Acquisition Bond Financing for
Newly Renovated Women’s Homeless Shelter in Washington, D.C.
High-Leverage, Long-Term Financing Demonstrates Mission Capital’s Diverse Financing
WASHINGTON, D.C. (March 29, 2016) —Mission Capital Advisors Debt & Equity Finance Group has arranged $24.6 million of first-mortgage bond financing from CGA Capital on behalf of Friedman Capital and an insurance company partner for the acquisition of 810 5th Street NW, a newly renovated property in the East End submarket of Washington, D.C.
The Mission Capital team of Jordan Ray, Steven Buchwald and Eugene Shevaldin represented the sponsors in arranging acquisition financing for the 32,246-square-foot, triple-net leased property, which is leased by the District of Columbia’s Department of Human Services. The building includes housing, administrative offices and professional development facilities. The property will provide temporary assistance and support to homeless women while helping them maximize their potential for economic security and self-sufficiency by offering on-site assessment and case management.
“We knew this was a transaction that some capital providers might shy away from based on its specialty use,” said Ray, a principal of the firm. “Ultimately, CGA Capital was able to get comfortable with the lease signed by the District and provide our clients with a 20-year high-leverage credit tenant loan.”
Buchwald added: “As is common with GSA leases, this lease includes clauses that can be perceived as ambiguous. One of the challenges we faced was ensuring that lenders were at ease with these clauses. All in all, it was a solid loan for this asset and great execution for all.”
Added Mission Capital principal David Tobin: “Both Mission and our clients believed strongly that the property was sorely needed to address the needs of the homeless in Washington D.C. We’re honored to collaborate with Friedman Capital on this project and assist in bringing this philanthropic need to the district.” Tobin also mentioned that Mission will be donating a portion of its fee to the shelter.
Friedman Capital is a Washington D.C. based, family-owned investment firm founded by Brian Friedman that owns operating companies, including various real estate platforms. The firm is excited to acquire the socially responsible property for its generational portfolio as it sees the investment as an interest rate hedge due to the lease’s 20-year term and annual rent bumps.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Raleigh, North
Carolina. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For
more information, visit www.missioncap.com.