Allianz Real Estate has provided a $237 million (€218 million) loan to finance Patriots Plaza, a government-leased office complex in downtown Washington DC.
The loan has been provided to a newly-formed joint venture between US fund Multi-Employer Property Trust (MEPT) and German pension fund Ärzteversorgung Westfalen-Lippe (AVWL). On 17 December, MEPT announced that it had sold a stake in Patriots Plaza to AVWL.
Allianz’s 10-year fixed-rate loan is understood to have been written at a loan-to-value ratio of between 50 and 60 percent.
Patriots Plaza is located south of the Capitol and close to the Senate and Congressional buildings. The complex was built between 2005 and 2009 and consists of three office buildings totalling 980,000 square feet. Patriots Plaza is 90 percent leased, mainly to US government tenants.
Allianz Real Estate has had an active year in the US lending market, where it has originated $2.3 billion of debt. This week, it announced that it has provided a $200 million loan to a co-mingled fund managed by Clarion Partners to finance a mixed-use portfolio of multi-family, industrial and retail property located across the US.
The US arm of Allianz Real Estate acts as a principal on behalf of the Allianz Group insurance companies and makes equity and debt investments. Debt is typically long-term and fixed-rate.
MEPT was founded in 1982 and is advised by Bentall Kennedy. It is a $5.9 billion net asset value open-ended co-mingled real estate equity fund with 324 US pension plan investors.
AVWL, an institution of the Medical Association of Westfalen-Lippe, is one of Germany’s largest pension funds with more than €11 billion of assets under management.