The HGI-funded senior loan will support capital improvement programs and leasing activity
Affiliates of Harbor Group International, LLC (“HGI”), a privately owned international real estate investment and management firm, have provided a $38.3 million senior loan to real estate investment company Kairos Investment Management Company (“Kairos”) to refinance and fund capital improvements for 1250 Eye Street, an office building in Washington, D.C.'s East End. The loan proceeds will be used to refinance the existing debt, as well as complete ongoing renovations and enhancements of the building while supporting leasing activity.
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Acquired by Kairos in 2023, 1250 Eye Street is a 12-story office building on the southeast corner of 13th and I streets, spanning 180,000 rentable square feet. The building features unobstructed views of Franklin Park, the largest park in the city, along with clean window lines providing generous light and air.
Since acquiring the property, Kairos has successfully leased a significant portion of the property, with activity expected to continue following planned enhancements and improvements to the building.
With this new financing, Kairos will add a 12th floor tenant amenity suite, designed by industry-leading architectural firm Gensler, that will feature an elevated hospitality lounge, conference center, bar/kitchen and terrace. The firm will also continue the development of move-in ready office spaces and upgrade areas including the lobby, gym, bike room and parking/valet experiences.
“We're seeing renewed momentum in the Class A office sector, particularly for properties that offer strong amenities and prime urban locations,” said Michael Nathan, Chief Investment Officer-Office, Harbor Group International. “This financing supports a thoughtful renovation plan that aligns with our debt strategy of lending on assets with long-term demand fundamentals and partnering with high-quality sponsors.”
1250 Eye Street's proximity to key landmarks such as the White House and U.S. Capitol, as well as popular destinations including CityCenterDC, an outdoor shopping center, and Capital One Arena are expected to attract strong tenant interest and drive leasing velocity.
“We are grateful for HGI's support as our lender as we reposition 1250 Eye Street to be a premier office destination within Washington, D.C.,” added Jonathan Needell, President & Chief Investment Officer, Kairos Investment Management Company. “We believe this renovation will bring new energy to a prime office asset, enhancing its appeal to today's tenants and driving long-term value.”
About Harbor Group InternationalHarbor Group International, LLC, and its affiliates control an investment portfolio of approximately $20 billion, including 57,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, Harbor Group International maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.Follow Harbor Group International on LinkedIn.
About Kairos Investment Management CompanyKairos Investment Management Company is a real estate investment firm with $4.3 billion AUM, as of June 2024. The firm seeks opportunities that offer compelling risk-adjusted returns, often leveraging a contrarian perspective to identify mispriced or overlooked assets. The investment team brings an average of 30 years of experience across acquisitions, asset and property management, development, and distressed real estate, enabling a comprehensive approach to execution.
Media Contact:Prosek Partners for HGIPro-hgi@prosek.com
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SOURCE Harbor Group International, LLC
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