Investcorp Sells $100M First Mortgage on D.C. Coast Guard HQ

The mortgage, which is due in 2014, was sold to the Talos Capital Limited for an undisclosed price.

July 1, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user Chairman of the Joint Chiefs of Staff

Investcorp Real Estate Credit Fund has sold a $100 million first mortgage loan backed by the longterm Washington, D.C. headquarters of the U.S. Coast Guard. Investcorp Real Estate Credit Fund is the U.S.-based real estate arm of alternative investment manaer Investcorp.

The mortgage, which is due in 2014, was sold to the Talos Capital Limited for an undisclosed price. “Active portfolio management means that we are always looking for opportunities to meet our investment objectives,” Investcorp real estate co-head Jon Dracos said in a prepared statement. “We saw an opportunity to sell this mortgage at a strong profit given investors’ renewed interest in commercial real estate loans and the dearth of quality assets changing hands these days.”

Investcorp acquired the mortgage just 15 months ago in early 2009. Dracos said the company was fortunate to buy during the market downturn when forced selling by financial institutions depressed prices. However, the sale price for the deal was not revealed.

The Department of Homeland Security, within which the Coast Guard resides, says it may consolidate offices onto a new campus.

Investcorp has offices in New York, London and Bahrain. It has six lines of business: private equity, hedge funds, real estate, technology investment, Gulf growth capital and MENA mezzanine. It was founded in 1982.