Natixis Lends 46 Million for 1015 18th Street NW
Natixis provided a $46.3 million loan to Normandy Real Estate Partners for the refinancing of 1015 18th Street NW, a Class A office building located in the CBD submarket of Washington, DC. With this loan, Natixis continues to actively lend in the D.C. market, having financed over $340.0 million in 12 transactions since 2015.
A joint venture between Normandy Real Estate Partners and NTT Urban Development Corporation acquired the property in 2015 and implemented an extensive capital improvement program to modernize and reposition the asset from Class B to Class A, taking advantage of its central location. The CBD submarket has witnessed a resurgence of leasing activity, drawing tenants to the location for its institutional quality office product, abundant amenities, and superior access from the District, Northern Virginia, and Maryland.
1015 18th Street NW sits one block from Farragut Square and approximately three blocks from the White House. The property benefits from immediate access to four metro lines (Red, Orange, Blue and Silver) and numerous neighborhood amenities within walking distance. In addition to the office space on floors 2 through 11, there is ground-level retail space fronting 18th Street NW and penthouse-level amenity space which includes a fitness center and outdoor space. The property also contains a 3-level below-grade parking garage containing 118 parking spaces which can be accessed from K Street and Connecticut Avenue.
Normandy Real Estate Partners is a leading, privately-owned real estate operator and investment manager that targets underperforming office and mixed-use investments in well-located urban and transit-oriented submarkets in the Northeast and Mid-Atlantic regions. Normandy utilizes its vertically-integrated operating platform to enhance value through creative repositioning, financial structuring, intensive management, and capital investment. Since its founding in 2002, the firm has managed a series of discretionary real estate funds and joint ventures backed by some of the most prestigious institutional investors in the world. With over 120 employees and offices in Boston, New York, Washington D.C and Morristown, New Jersey, Normandy owns and operates one of the largest diversified real estate portfolios in the Northeast and Mid-Atlantic region comprising over 14 million square feet.
NTT Urban Development Corporation is a real estate developer based in Japan, listed in the Tokyo Stock Exchange. As a real-estate arm of the NTT Group, and a leading commercial developer with over 30 years of experience, its major business focus is to develop and manage a diverse portfolio ranging from office, residence, retail, hotel and resorts with over 800 employees. Since its first global investment in London in 2009, the firm’s global activity has been continuously expanding to regions abroad. Currently, its business base reaches out to the United States, the United Kingdom, Australia and Asia with multiple investments acquiring office, mixed-use and residential land with value-add opportunities. As of FY2016, its assets under management totaled 1,006 billion yen.