CWCapital Provides $151M FHA Construction Loan for D.C. Apartment Project
- Jul 09, 2010
July 9, 2010
By Barbra Murray, Contributing Editor
Demand for apartment properties is picking up again in Washington, D.C., and with CWCapital having just furnished Archstone with a $151 million construction loan via its FHA platform, there’s nothing standing in the way of the developer’s plan to commence construction of its 469-unit 1st & M project.
With a location at the intersection of 1st and M streets, N.E., in the nation’s capital, Englewood, Colo.-based Archstone’s 13-story Class A apartment tower will sit in the city’s NoMa district near Union Station and the U.S. Capitol. In addition to the residences, 1st & M will feature 2,500 square feet of ground-level retail space, a library, activity studios and a 16,000-square-foot courtyard.
The project financing, which includes a 30-month construction period, comes in the form of a 40-year fully amortizing permanent loan. Boston-based CWCapital asserts that the financing, Archstone’s first FHA loan, is one of the largest HUD-insured construction loans ever facilitated for a multifamily development.
“With strong multifamily demand in select markets, such as Washington D.C., FHA is providing critical new construction capital to borrowers,” Michael Berman, President and CEO of CWCapital, noted in a prepared statement. “While many banks are on the sidelines or have restricted credit criteria, FHA is performing an important counter-cyclical role and attracting high quality sponsors with high quality projects who have rarely, if ever, accessed this capital. The 1st & M loan is a perfect example of this.”
The Washington, D.C., apartment has not escaped the consequences of the economic downturn, but it is, indeed, on the mend. “In numerous submarkets, we’re seeing unsurpassed rental activity,” Drew White, Executive Director with real estate services firm Cushman & Wakefield, told CPE. “We’re seeing declining concessions, some rent growth and a lot more traffic than we had seen in terms of renters looking and signing on for units. Many new Class A construction projects with end-of-summer lease up targets have reached their goals and its only mid-July. People are moving.”
Archstone is on target to compete construction of 1st & M in 2013