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Globe Street: Rossyln Portfolio C-Note Moves at Discount

06/17/2008

ROSSLYN, VA-A New York City-based real estate investment and development fund has acquired a $157.7 million C-Note on the senior mortgage of a 1.4-million-sf class A office portfolio here owned by Monday Properties. The firm, Savanna, purchased the note at a substantial discount to par value from a Wall Street investment bank that wanted to move the assets off of its balance sheet.

The note is secured by three buildings 1000 and 1100 Wilson Blvd., or the submarket’s Twin Towers, and 1101 Wilson Blvd. The properties are 98% leased by the federal government, Northrop Grumman, and Raytheon. “We have invested in fully-occupied, Class A trophy assets in one of the best locations in Rosslyn, which is one of the strongest markets in the DC area,” Nicholas Bienstock, managing partner with Savanna, says in a prepared statement. “We purchased a note representing 50 to 67% ‘post credit crunch’ loan-to-value backed by the terrific sponsorship of Monday Properties.”

The note is typical of the type of investment Savanna makes, a company spokesman tells GlobeSt.com. “Savanna targets notes secured by class A and B properties in major metro markets backed by the kind of real estate we buy, own and operate for our own account. Typically we buy assets that have strong sponsors with substantial equity behind our last dollar debt basis.”

He adds that Savanna has purchased 10 notes in the past year from banks at discounts of up to 30%. “The Rosslyn portfolio purchase represented a terrific acquisition based on a substantial discount to par value and the particularly strong asset, market and sponsorship characteristics.”

 

By Erika Morphy

Copyright 2008 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part is prohibited.

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More About Savanna

Who We Are
Savanna is a real estate investment and development firm that focuses on opportunistic investment strategies targeting superior risk-adjusted returns on behalf of its institutional investors.

Investment Strategies
Savanna employs opportunistic strategies to invest in middle market real estate assets of the primary asset types including office, retail, residential, and industrial.

Our Team
Savanna's team has a broad base of experience and expertise in valuation, financial analysis, deal sourcing and structuring, property acquisition and disposition strategy, design, development, redevelopment, asset management, accounting, and leasing.

Partners & Lenders
Savanna has invested on behalf of, and in partnership with, many of the premier institutional real estate private equity funds, REITS, and hedge funds active in the United States.