For 50 years, an office block occupied by The Washington Post offered few conveniences to workers and visitors. Now, Carr Properties, as developer and owner of Fannie Mae’s headquarters building, will create a transformational trophy office building with 49,000 square feet of retail that will offer neighborhood tenants and residents distinctive restaurants and amenities when it’s completed in June 2018.
The project, known as Midtown Center, is currently under construction and located in the heart of Washington’s Central Business District, just blocks from the White House. When completed in 2018 it will serve as Fannie Mae’s new headquarters.
Building features will include a floor-to-ceiling glass curtain wall façade, rooftop terrace, centralized conference center for Fannie Mae's exclusive use, state-of-the-art fitness center, bicycle facility, three levels of underground parking, landscaped central courtyard and sky bridges connecting the two buildings — the East and West Towers. It will target LEED Gold certification.
The project sponsor, Carr Properties, is an owner, operator and developer of office properties in the Washington, D.C. metropolitan area with ownership interests in a portfolio of 16 commercial office buildings totaling approximately 3.7 million square feet, as well as four major development properties (including Midtown Center) that will add 2.0 million square feet to the portfolio when completed.
The project, which is 87% pre-leased to Fannie Mae, will contain 49,000 square feet of retail and restaurant space.
“Midtown Center will serve as a new hub in the center of the city and offer a great work environment for Fannie Mae’s associates and a vibrant street retail and dining experience,” said Oliver Carr III, CEO of Carr Properties.
The high profile deal attracted competitive bids from most major banks. Three key factors convinced Carr Properties to select PNC Real Estate as joint bookrunner, according to President and CFO John Schissel.
“PNC’s willingness to underwrite $200 million, along with an attractive structure and our strong, long-standing relationship, were critical factors in our decision,” Schissel remarked. “During the recession we remained active investors. PNC continued to finance our projects and never wavered on terms.”
Date: May 2016
Location: Washington, D.C.
Financing Amount: $525 million with a $200 million PNC underwrite and an $87.5 million PNC hold
Financing Type: Seven-bank syndication with PNC as joint bookrunner
Scope: Two towers totaling 14 stories and 862,000 square feet of office and retail space
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