One of Southwest D.C.’s massive government-anchored buildings has landed a refinancing deal.
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Republic Properties secured a $96.5M loan to refinance Portals II, an over 600K SF office building at 445 12th St. NW.
The loan was provided by a pension fund, Republic Properties’ CEO Steve Grigg told Bisnow. He declined to name the fund but said it was arranged by JLL Securities.
The financing documents filed with the D.C. Recorder of Deeds last week named JLL Securities but didn't name the pension fund. The loan matures in 2037, deed records show.
The deal refinanced a $130M loan that U.S. Bank provided in July 2020, deed records show.
The building is 71% occupied by the Pension Benefit Guaranty Corp., which signed on in 2017 for a 432K SF lease. It recently landed one other tenant: healthcare company AmeriHealth Caritas District of Colombia, which took 20K SF on the top floor in a move from neighboring Portals III, Grigg said.
“We’ve successfully replaced a senior loan from U.S. Bank with a securitized long-term financing, which allows us to re-tenant the remaining portions of the building and provides long-term stability for the property,” Grigg said.
The PBGC moved into Portals II in 2022, relocating from 1200 K St. NW, a McPherson Square office building that sold last month at a foreclosure auction.
The agency has a 15-year lease through 2037 at Portals II. It replaced the Federal Communications Commission, which moved to the Sentinel Square complex in NoMa.
Next door, the lenders for Portals III — owned by Republic Properties and Samsung SRA — filed to foreclose on the property in February, Bisnow reported at the time. A foreclosure auction has been rescheduled multiple times but is now slated for July 2 with Harvey West Auctioneers.
Meanwhile, the Portals I building at 1250 Maryland Ave. SW is slated for an office-to-residential conversion. The 536K SF property was purchased by Henderson Park late last year. The London-based private equity firm partnered with Los Angeles-based Lowe for the conversion, expected to start in early 2025 and last two years.
UPDATE, JUNE 10, 4 P.M. ET: This story has been updated with more information on the previous loan that was refinanced.
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