This Week's D.C. Deal Sheet
Enterprise Community Development secured financing to construct a 151-unit, all-affordable senior housing building next to the Metropolitan Branch Trail.
The project, Edgewood V, will join the Edgewood Commons affordable housing community, set to total 800 units with this latest addition. Enterprise secured $189M for Edgewood V, a spokesperson told Bisnow.
The $189M in financing breaks down to $123M in permanent funding sources and $66M in construction-only funding. The Department of Housing and Urban Development is providing a mortgage, and the equity is from federal and local Low-Income Housing Tax Credits, tax-exempt bonds and District of Columbia gap financing, according to a release.
Ninety-six units will be reserved for those making up to 30% of the area median income, 54 for those making up to 50% AMI, and one will be available for short-term stays for residents’ visitors. The building will also feature 18K SF of amenities and services facilities including a library, café, community room with an outdoor terrace, and spaces for resident entertainment wellness programming. Delivery is set for the third quarter of 2025.
“This community is an essential component of our ongoing efforts to build and preserve affordable housing and support our senior community in the Edgewood neighborhood,” Enterprise Community Development interim President Christine Madigan said in the release.
LEASES
London-based State of Play Hospitality is taking 8,500 SF at 655 New York Ave. NW for its social darts concept Flight Club, Brookfield Properties announced in a press release this week. The eatertainment venue is set to move into ground-floor retail space at the 762K SF property in Mount Vernon Triangle, owned by Douglas Development and Brookfield Properties. It will join retailers like Rumi’s Kitchen, Pearl's Bagels, Kinship and Compass Coffee. The New York Avenue lease marks Flight Club's 13th location globally and eighth in the U.S. The American Chemistry Council also inked a 93K SF lease at the property in October.
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Biopharmaceutical company AstraZeneca inked a 198K SF industrial lease in Gaithersburg. The company is taking a full building at Matan Cos.’ 700 Progress Way, a 44-acre industrial park completed speculatively earlier this year. Matan's James Matan represented the landlord in the transaction, and CBRE’s Kevin Reap represented AstraZeneca.
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Eastbanc leased 9,400 SF in Georgetown's Cady's Alley development to Italian furniture brand Poliform. The brand, with 110 showrooms across 90 countries, signed a 10-year lease at 3304 M St. NW, Eastbanc announced Tuesday. Poliform joins retailers like District Doughnut, The Shade Store, Brilliant Earth and B&B Italia in Eastbanc’s 120K SF Cady’s Alley retail and residential development. The landlord said it owns the majority of Georgetown’s retail.
PERSONNEL
Bob Milkovich has stepped down from Rand Construction Corp. after nearly five years of serving as CEO, the Alexandria-based firm announced Tuesday. Along with his departure, the firm announced a new shared leadership strategy, with five executives elevated to partner roles. Linda Rabbitt, the firm’s founder, whom Milkovich replaced as CEO in January 2019, will continue to serve as chairman of its board.
The five partners are Matt Dausch, an executive vice president who will manage the firm’s regional offices; David Childress, an EVP who will lead the firm’s corporate functions; Tim Schmidt, an EVP who will lead its national client platform; Cullen McGuire, a senior vice president who will lead its Utah and Denver offices; and Fred Noblett, an SVP who will lead its Austin office and risk management functions.
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Enterprise Community Development has hired Reshma Holla as vice president of development strategy and impact. The role, which will focus on supporting and driving sustainable impact, is a new position for the Silver Spring-based affordable housing developer. Holla was previously at the D.C. Department of Housing and Community Development.
SALES
Affordable housing nonprofit The NHP Foundation and Embolden Real Estate, a D.C.-based minority- and woman-owned firm, announced Wednesday it partnered on the $9M acquisition of a six-story, 23-unit apartment building in Kalorama. The sale closed after a Tenant Opportunity to Purchase Act process in which the tenant association at 2151 California St. NW exercised its TOPA rights and selected Embolden as the buyer.
The buyers said they plan to convert the property from rent-controlled units into 100% affordable units for a mix of incomes under a long-term agreement. It received a grant from Amazon’s Housing Equity Accelerator Fellowship and a loan from Capital Impact Partners to finance the deal.
FINANCING
The largest shopping center in the region has been refinanced for $710M. Macerich secured the financing for Tysons Corner Center, a 1.8M SF mall next to the Tysons Metro station. The new loan replaces the center’s previous $666M debt with a CMBS loan with a 6.6% fixed interest rate and interest-only payments throughout its five-year term.
Deutsche Bank led a group of lenders — Bank of Montreal, Goldman Sachs and JPMorgan Chase — in originating the CMBS loan, CoStar first reported last month, citing a Securities and Exchange Commission filing.
