Office Properties Income Trust Secures Loan for DC-Area Asset

3300 75th Ave. Image courtesy of CommercialEdge

Office Properties Income Trust has closed on a $30.7 million loan for a 266,000-square-foot office asset in Landover, Md. The financing marks the launch of the implementation of OPI’s financing strategy for its merger with Diversified Healthcare Trust.

With an all-in fixed interest rate of 7.21 percent, the non-recourse 10-year CMBS loan has five years of interest-only payments and then five years of amortization on a 30-year amortization period. Based upon the appraised value, the implied capitalization rate is 6.2 percent and the loan-to-value ratio is almost 50 percent.

Located on 13.7 acres of land at 3300 75th Ave., the single-story building came online in 1985 and underwent cosmetic renovation in 2004, according to CommercialEdge data. The office property is fully leased by the Defense Intelligence Agency through 2039.

Further merger details

OPI has secured a bridge loan commitment from JPMorgan Chase Bank, totaling $368 million, for the proposed merger with DHC. The company aims to secure separate notes for specific properties serving as collateral for the bridge loan as part of its overall financing strategy.

Upon merging, the combined company would own 539 properties across 40 states and Washington, D.C. Some $2 million to $3 million is expected annually in cost savings and synergies once the transaction completes in the third quarter of this year.

The portfolio totals about 9 million square feet of life science and medical office properties, as well as more than 27,000 senior living units. One of the assets, The Muse at Torrey Pines in San Diego, underwent a $100 million redevelopment two years ago and now features 186,000 square feet of collaborative office and flexible laboratory space.