Case Study

Rosslyn Portfolio

The Investment Property.┬áThe Rosslyn Portfolio consists of 3 trophy-quality office buildings totaling 1.4 million SF in the Rosslyn section of Arlington, VA. The first two buildings, known as “The Twin Towers,” are interconnected, elliptically shaped, high-rise office towers totaling 1.1 million SF. The third property is a 19-story, 326,000 SF Class A high-rise office building.

The Opportunity/Challenge. The mortgage for the Rosslyn Portfolio is fully collateralized by Class A, stabilized, trophy office buildings. The borrower, Monday Properties, is one of the D.C. area’s most active and well-regarded real estate firms. Through an existing relationship with a Wall Street investment bank seeking to recapitalize its balance sheet, Savanna saw an opportunity to acquire a piece of the Rosslyn Portfolio’s first mortgage at a substantial discount to par value.

The Strategic Insight. The Rosslyn Portfolio features one of the strongest office locations in the D.C. Metro Area, directly facing across the Potomac River towards the Kennedy Center for the Performing Arts, the Lincoln Memorial, and the National Mall.

Plan Execution. The loan has substantial in place NOI and Monday Properties continues to build NOI as it rolls rents to market. Savanna’s discounted purchase of its piece of the first mortgage allows it to realize an attractive cash on cash yield.

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