HFF Arranges $99M Financing for M-U development in DC
- Sep 20, 2013
Washington, D.C.’s U Street/North Shaw submarket will see a former plumbing supply company transformed into a 375-unit, Class A, mixed-use development aimed at young professionals.
Work on the Atlantic Plumbing project located at the intersection of 8th and V streets, NW, can begin thanks to a $99.2 million financing deal arranged by HFF on behalf of the owners, The JBG Companies of Chevy Chase, Md., and Walton Street Capital, L.L.C. of Chicago. The four-year construction loan from Capital One has extension options for an additional three years, according to a news release from HFF.
The HFF debt placement team was led by Sue Carras, Walter Coker and Brian Crivella.
The property is two blocks from the U Street Metro station and near the busy U Street retail and entertainment corridor as well as Howard University. When completed by early 2015, the development will have 375 residential units and 23,785 square feet of ground-floor retail space, including artist studios, in two buildings. The buildings, designed by New York architect Morris Adjmi, will have one- and two-bedroom units with an average of 716 square feet. Amenities will include a fitness center with yoga and spin areas, lounge with bar and theater, and electric car charging stations. The rooftop will feature gardens, a pool, grilling stations and a movie screening area.
The main building, adjacent to the 9:30 Club, a well-known live music venue, will be 10 stories and contain 310 residential units in the 290,000-square-foot building, according to a release from HITT Contracting Inc., the company constructing the development. A six-story, 61,000-square-foot building on the south side of V Street will contain 64 apartments. HITT Contracting said the larger building will have a steel exoskeleton and use reclaimed brick and metal panels from the former Atlantic Plumbing property. Local architectural firm Eric Colbert & Associates will also be working on the project along with Adjmi’s company.
JBG is very active in the D.C .metropolitan area, with more than $10 billion in assets under management and development in the region. In addition to the Atlantic Plumbing project, JBG is building Louis at nearby U Street and 14th Street, which will have 268 residential units and 421,000 square feet of retail, including a Trader Joe’s grocery store. It is also planning a 135-unit building at 1306 U Street and 14th Street, across from the U Street Metro, and a development with 250 units and 30,000 square feet of retail at Florida and 8th Avenue, just south of the Atlantic Plumbing site, according to the Washington Business Journal.
Last month, JBG announced another residential development in the Northwest section of the city. The Woodley, being constructed in a joint venture with CIM Group, will have 212 luxury units in an eight-story building located in the Woodley Park neighborhood. It is due to open next in March 2014.