Savanna Sells $158M Senior Note Secured by D.C. Office Properties

Savanna wrapped up the sale to Apollo Global Real Estate of a majority interest in a $157.7 million note collateralized by a 1.4 million-square-foot office portfolio in Rosslyn, Va.

Savanna has wrapped up the sale of a majority interest in a $157.7 million note collateralized by a 1.4 million-square-foot office portfolio in one of suburban Washington, D.C.’s most successful office markets. The company sold the $81 million senior note piece to an account managed by Apollo Global Real Estate and will maintain the remaining $76.7 million junior note.

“The proceeds from the sale were used to pay off the note-on-note seller financing that was earlier received from Lehman Brothers, at the time that the C-note was purchased in 2008, which was nearing maturity,” an industry source told Commercial Property Executive.

Owned by a joint venture involving Monday Properties and Goldman Sachs’ U.S. Real Estate Opportunities Fund, the portfolio encompasses three trophy office buildings in Arlington, Va.’s Rosslyn submarket. Monday Properties has owned the assets, 1000-1100 Wilson Blvd. and 1101 Wilson Blvd., since 2007. The interconnected high-rises at 1000 and 1100 Wilson Blvd. have respective current assessed values of approximately $291 million and $271 million, according to Arlington property records. The tower at 1101 Wilson has a current assessed value of roughly $131.4 million.

The Rosslyn submarket is one of the tightest in Suburban Washington, D.C., and the portfolio’s high occupancy level is reflective of that status. Tenants in the office buildings include the likes of Aerospace Industries Association, Raytheon, the U.S. Department of Labor and U.S. Department of State, and a number of other government related organizations.

“We are pleased that Apollo Global Real Estate has purchased the senior note and has confidence in the strength of this trophy asset,” Tom Farrell, senior associates with Savanna, noted in a prepared statement. Eastdil Secured arranged the transaction.