Grosvenor Lands $82M Refi for DC Office Building

1500 K Street NW. Image courtesy of Grosvenor

Grosvenor has refinanced an office building in Washington, D.C., with an $82.1 million first mortgage provided by Helaba. 1500 K Street NW underwent a $20 million renovation focused on sustainability, wellness and modern features. An Eastdil Secured team coordinated the financing on behalf of Grosvenor.

Built in 1928, 1500 K Street NW offers 262,190 square feet of office and retail space. The building’s recent upgrades included the restoration of the lobby, as well as a new roof, rooftop lounge and fitness center. HVAC systems with sustainable filters were installed to reduce energy consumption. The asset attained LEED Gold, Energy Star, Wired Gold and WELL Health-Safety certifications once renovations were complete.

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Located two blocks south of the office space is The White House. 1500 K Street NW is situated in a central area surrounded by the CBD and East End submarkets and within walking distance to the McPherson Square Metrorail Station. Residential neighborhoods such as Northwest D.C., Dupont Circle and 14th Street are easily accessible.

According to CommercialEdge data, the property’s office tenants include CommonGrounds Workplace, National Park Foundation, the Faegre Drinker law firm, Lawyers Committee for Civil Rights and ICM Speakers, while the restaurant space is leased to Joe & The Juice. There are three office spaces currently listed.

A recent CBRE report states that office market fundamentals in Washington, D.C., worsened in the second quarter, with the average vacancy rate rising to 19.9 percent quarter-over-quarter. In June, the national office vacancy rate was 15.2 percent.

Grosvenor has been operating in the Washington area since 1986, most recently acquiring Grosvenor Tower, a multifamily community, in July.