HFF secures $75 million financing for The MBA Headquarters Building in Washington, D.C.

The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it secured a $75 million financing for The MBA Headquarters Building, a 169,430-square-foot office building in Washington, D.C.

HFF senior managing directors Bill Asbill and Bob Donhauser and director Cary Abod exclusively represented the borrower, The Mortgage Bankers Association, a national association representing the real estate finance industry. The acquisition loan was structured as a variable-rate, 30-year taxable bond transaction enhanced by a Letter of Credit Facility provided by PNC Bank. Wells Fargo, Chevy Chase Bank and Virginia Commerce Bank participated in the Letter of Credit Facility. PNC Capital Markets handled the marketing of the bonds, which are typically sold to money market funds at an interest rate near the 30-day LIBOR rate.

“MBA’s leadership and staff are very excited to be moving into its state of the art new building,” said Jonathan L. Kempner, MBA’s president and CEO. “This is a great long term investment for our organization and the financing package provided us with the resources and flexibility we needed to make the deal a success.”

“This financing structure resulted in a very cost efficient acquisition loan for MBA’s new headquarters building and provides funding for the remaining tenant improvement and leasing costs for approximately 60% of the space, which will be leased to third-party tenants,” said Asbill.

Completed in April 2008, The MBA Headquarters Building is located at 1331 L Street NW between 13th and 14th Streets in the East End submarket of Washington, D.C. The new Convention Center, the central business district and six Metro stations are within walking distance of the property.

“The building has been pre-certified by the US Green Building Council at the LEED (Leadership in Energy and Environmental Design) Gold Level for the core and shell and Silver for the interior. Currently there are only four buildings in Washington, DC with LEED-Gold certification, giving the property a clear competitive advantage with eco-conscious tenants,” added Donhauser. “The stunning design with floor to ceiling glass walls is drawing the attention of numerous prospective office and retail tenants.”

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.