This Week's D.C. Deal Sheet
Dantes Partners, Gilbane Development and the Delta Housing Corporation of D.C. secured a $28M loan from TD Bank for a 166-unit affordable housing preservation near the H Street corridor, the bank announced Tuesday.
The loan covers substantial renovations for Delta Towers, a multifamily building at 1400 Florida Ave. NE that was built in 1979. Half of the units in the project are slated to be affordable for those making 80% or less of the area median income.
The building neighbors a newly developed project from the same partners, dubbed Fortitude at Delta Towers. That building consists of 179 affordable senior housing units, some of which are occupied by former residents of the original Delta Towers, per a press release.
"Delta Towers was the first affordable housing building for seniors in the H Street renewal area after the devastating 1968 riots and was, at the time, the first and only building of its kind developed by a group of Black women," DHCDC President Trinette Smith-Campbell said in a statement. "The DHCDC has long maintained a trailblazing presence in the Trinidad community of D.C., and we are excited for the site's next chapter to begin."
SALES
Gilbane Development has acquired an affordable housing property in Ward 8, where it plans to add “several hundred luxury affordable housing units,” per a press release. Belmont Crossing, located at 4201 Seventh St. SE, is a 275-unit affordable development. Financing for the redevelopment comes from federal and state Low-Income Housing Tax Credit equity and a loan from the D.C. Housing Production Trust Fund. A partnership led by TM Associates of Rockville sold the property for an undisclosed price. Greysteel’s Fletcher Hultman, Henry Mathies, Kyle Tangney and Herb Schwat represented the seller in the deal.
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An affiliate of New York-based Milbrook Properties has made its first acquisition in the D.C. region, acquiring a Gaithersburg shopping center for $24.5M, the Washington Business Journal reported. The seller, BIG Shopping Centers, hired Marcus & Millichap's Institutional Property Advisors for the deal. Located at 300 North Frederick Ave., the 71K SF property is anchored by a Gabe's and an AutoZone.
MILESTONES
Officials in Prince George’s County will once again join Amazon and developers at the groundbreaking of an affordable, transit-oriented development. Next Wednesday, Urban Atlantic’s Vicki Davis will join officials to celebrate the beginning of construction on the 291-unit multifamily building, The Margaux. Kept affordable for 98 years through Amazon Housing Equity Fund dollars, the building is part of a larger, 2.3M SF development near the New Carrollton Metro station.
PERSONNEL
Horning Brothers CEO David Roodberg will retire early next year, the firm announced Wednesday. Roodberg, whose retirement is scheduled to begin March 1, 2023, spearheaded major projects for the residential and commercial property manager, including Tivoli Square in Columbia Heights and the Commons at Stanton Square, home of Martha’s Table. In addition to his role at Horning, Roodberg has also served on the board of Martha’s Table and as the board chair of the Washington Housing Conservancy. The firm has retained Ellen Klasson of real estate advisory RCLCO to helm the search for a successor.
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In the latest move to bolster its D.C.-area presence, Stream Realty Partners has hired Tim McCarty as vice president for its office team. McCarty previously worked at Akridge as an assistant vice president. McCarty joins a firm whose office portfolio totals more than 11M SF and is continuing to expand.
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Finmarc Management has hired a new director of leasing. Molly Badger joins Finmarc from MyEyeDr., a healthcare company where she served as real estate manager for a portfolio of 800 vision care centers. Badger’s responsibilities entail marketing and leasing a portion of Finmarc’s mid-Atlantic commercial office, industrial/flex and retail portfolio. Prior to MyEyeDr., Badger worked as a retail leasing associate at H&R Retail.
FINANCING
MRP Realty secured financing to begin construction on the third phase of Washington Gateway, a joint venture with Barings in NoMa. The final piece of the nearly 20-year-long development project landed a $69.4M loan from Santander Bank in a deal brokered by Eastdil Secured. The new phase entails a 16-story, 254-unit multifamily building with nearly 4K SF of retail. The building’s address will be 202 Florida Ave. NE, and Bozzuto has been retained to manage the property once it delivers. Construction is scheduled to begin in August.
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AREP announced its third general partner fund closed with new capital that will be put, in part, toward its $1B Northern Virginia data center fund. The AREP Strategic Opportunity Fund III closed with $63M, which the institutional fund manager said will be put toward residential, industrial, office and data center assets on the East Coast, with roughly a third going to the data center joint venture with Harrison Street Real Estate Capital.
