PNC served as Administrative Agent and PNC Capital Markets LLC acted as Sole Lead Arranger for a new high-profile office building adjacent to Washington, D.C.’s Freedom Plaza.
Rising on Pennsylvania Avenue just three blocks from the White House and featuring spectacular views of the Washington Monument and the Lincoln and Jefferson Memorials, One Freedom Plaza will be a stunning addition to the Washington, D.C., cityscape upon expected completion in the fall of 2018. Financing for the 13-story office building is a syndicated $180 million construction/permanent loan arranged by PNC Capital Markets and PNC Real Estate with three other banks.
A twin-shell glass façade contributes to the clean, elegant lines of the building, which was designed by world-renowned architect Helmut Jahn. With rooftop green space, operable windows, personal HVAC and lighting controls and state-of-the-art operating systems, it is projected to earn LEED Gold certification.
One Freedom Plaza replaces an aging office building that will be demolished, except for a portion of the existing garage that will be renovated. Nearly 70 percent of the office space has been pre-leased by an internationally recognized law firm.
Quadrangle Development Corporation, developer/owner of the existing building and owner of the site since the late 1970s, is spearheading the new development. Quadrangle, which is privately owned and has been in the business for more than 45 years, also developed over 2.2 million square feet of properties on the block where One Freedom Plaza will be situated, including the existing office building on the parcel, the restored National Theatre, the first JW Marriott hotel and an adjacent office/retail building.
Throughout the transaction, which took approximately one year to complete due to the complex structure of the credit facility and with several moving parts such as the involvement of multiple stakeholders and market fluctuations, PNC Real Estate kept a steady hand on the process, earning the sponsor’s appreciation.
“Once again, PNC Real Estate has demonstrated leadership and strength in the D.C. market and was able to maintain competitive financing terms as the market changed,” notes Christopher Gladstone, president of Quadrangle Development Corporation. “PNC has consistently been a trusted and reliable financing source for Quadrangle, and the bank delivered another creative debt structure with One Freedom Plaza.”
Date: June 2016
Location: 1301 Pennsylvania Avenue, NW, Washington, D.C.
Financing Amount: $180 million gross loan amount, $60 million PNC hold
Financing Type: Construction/permanent loan
Scope: 13-story; 283,481 rentable square feet
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