Rubenstein Mortgage Capital Recapitalizes 1801 L Street, Washington D.C. With New $42 Million First Mortgage Loan

Deal Refinances Previous Loan, Funds Ground Lease Buyout, Provides for Future Lease-up

March 1, 2021 – Washington, D.C. – An affiliate of Rubenstein Mortgage Capital (“RMC”), a private mortgage lending platform focused on debt investments secured by U.S. transitional office assets, announced the closing of a $42 million first mortgage loan facility to recapitalize 1801 L Street, a 200,000 square foot, 10-story office building in downtown Washington, D.C.  The loan enables the sponsor, 1118 Partnership, to retire existing debt, complete a ground lease buyout, and fund future leasing costs for the property.

1801 L Street is a well-located office property under long-term ownership by a partnership comprised of several established local real estate families.  The property is currently, and has historically been occupied by government tenants.  The financing provided by RMC delivers initial funding for debt retirement and the leasehold buyout, along with future advances to support the property’s lease-up.

“A strength of the RMC platform is our ability to provide tailored financing with flexibility for complex situations,” said Ashesh Parikh of RMC.  “In this case, we were familiar with both the sponsor and the asset and could collaborate on a financing solution to achieve the sponsor’s goals of refinancing previous debt, combining fee and certain leasehold interests in the property, and supporting the future business plan.”

The loan was originated by Ashesh Parikh at RMC, the debt investment platform headed by Fred Harmeyer at Rubenstein Partners, L.P. (“Rubenstein”), a vertically-integrated real estate investment advisor focused on value-add office property equity and debt investments.  The RMC platform has fully discretionary investment capital and targets non-recourse first mortgage loans of $25 to $100+ million in markets throughout the country with a focus on office properties in need of debt capital for acquisition, repositioning or for ground-up construction.