The D.C. Commercial Real Estate Industry Benefited From Tens Of Millions In PPP Loans

Thousands of businesses across the country have received federal dollars in recent months through the Paycheck Protection Program, including many of the largest commercial real estate companies in the D.C. area. 

The Treasury Department released new data this week on the recipients of PPP loans, and a Bisnow review of the data found at least 36 D.C.-area commercial real estate companies received $1M or more in forgivable government-backed loans through the program. 

At least 25 additional D.C.-area commercial real estate companies received between $150K and $1M, Bisnow's analysis found. The companies Bisnow found include developers, contractors, architects and brokerage firms based in the District and the Maryland and Virginia suburbs. 

The data gives ranges for each loan rather than specific amounts. If all D.C.-area CRE businesses got the minimum disclosed by Treasury, the data shows that they were awarded at least $70M combined through the federal program. 

The loans can be forgiven if recipients meet certain thresholds for spending the funds on retaining and paying workers. Most companies included in the data had an estimate of how many jobs the funds would retain, and the data also included the financial institution that arranged each loan. 

Some companies chose to return their loans after the program came under increased scrutiny and the administration released new guidance this spring. Shake Shack, one of the most high-profile companies to return PPP funds, gave back $10M in April.

Paradigm Cos., an Arlington-based commercial real estate firm, was approved for two separate loans for its property management and construction businesses. It chose to return the property management loan, which was between $2M and $5M, in May, Paradigm founder Stanley Sloter told Bisnow.

The Treasury Department data does not say whether a company chose to give back the loan after being approved. Bisnow has reached out to each of the companies mentioned below, and will update this story if more information becomes available. 

Sloter said Paradigm retained the loan for the construction company, between $1M and $2M, as the funds enabled it to keep its construction workers employed. 

"Additional guidance came out that said it was intended for this kind of company or that kind of company ... for the management company loan, we read that stuff and returned it," Sloter said. "The [construction company] one, we believe was certainly in the wheelhouse of what PPP was for, as we retained our construction team and kept people employed."

Shalom Baranes, one of the leading architects in the region, said the loan Shalom Baranes Associates received, between $2M and $5M, helped it navigate the crisis. 

"The PPP loan has certainly been helpful in supporting our ongoing operations and the costs associated with transitioning to remote work," Baranes wrote in an email. "We do, however, foresee the deleterious effects of the pandemic on our profession to extend well into 2021 with no expectation of further support."

Cresa, a D.C.-based brokerage firm that employs over 1,100 people around the world, received a loan between $2M and $5M that it says retained 260 jobs. 

"The Paycheck Protection Program loan we received has allowed us to preserve and protect jobs and our employees benefits," Cresa CEO Jim Underhill wrote in a statement. "With the impact the pandemic has had on the commercial real estate industry and Cresa specifically, we're a perfect example of what this program was intended for."

OTJ Architects Chief Marketing Officer Pascal Molenat, in an email to Bisnow, said the $2M to $5M loan OTJ received has given the firm additional stability to pay its staff and ensure it can honor its commitments to its clients. 

The Peterson Cos. used its $2M to $5M loan to keep paying its 150 employees and mitigate the financial impacts the pandemic had on its portfolio, including more than 50% of its retail tenants not paying rent in April and May, a spokesperson wrote in an email. 

The Donaldson Group CEO Carlton Einsel, through a spokesperson, said his firm kept its $2M to $5M loan and has used the proceeds to cover eligible payroll expenses. 

Madison Marquette CEO Vince Costantini told the Washington Business Journal the development firm used its $5M to $10M loan to cover payroll and occupancy expenses and was necessary because of reduced revenues at its properties. Douglas Development Principal Norman Jemal told WBJ the program provided "free money" that the company needed after granting rent concessions to many tenants. 

The following companies were awarded PPP loans of at least $5M: 

• Lerner Corp. received between $5M and $10M, arranged by Trustar Bank and retaining 414 jobs. 
• Madison Marquette received between $5M and $10M, arranged by Chain Bridge Bank and retaining 290 jobs. 
• Davis Construction Corp. received between $5M and $10M, arranged by Sandy Spring Bank and retaining 408 jobs. 
• Rand Construction Corp. received between $5M and $10M, arranged by Truist Bank and retaining 256 jobs. 

These companies were awarded PPP loans of at least $2M:

• MRP Realty received between $2M and $5M, arranged by United Bank and retaining 146 jobs. 
• St. John Properties received between $2M and $5M, arranged by Orrstown Bank and retaining 207 jobs. 
• The Donaldson Group received between $2M and $5M, arranged by Truist Bank and retaining an undisclosed number of jobs. 
• Carr Cos. received between $2M and $5M, arranged by EagleBank and retaining 146 jobs. 
• Jefferson Apartment Group received between $2M and $5M, arranged by Citizens Bank and retaining an undisclosed number of jobs. 
• The Peterson Cos. received between $2M and $5M, arranged by United Bank and retaining 194 jobs. 
• Rappaport Management Co. received between $2M and $5M, arranged by United Bank and retaining 108 jobs.  
• Cresa Global received between $2M and $5M, arranged by JPMorgan Chase Bank and retaining 260 jobs. 
• Crescent Hotels & Resorts received between $2M and $5M, arranged by Bank of America and retaining 130 jobs. 
• Crestline Hotels & Resorts received between $2M and $5M, arranged by Truist Bank and retaining an undisclosed number of jobs. 
• John Moriarty And Associates received between $2M and $5M, arranged by Citizens Bank and retaining an undisclosed number of jobs. 
• Shalom Baranes Associates received between $2M and $5M, arranged by Bank of America and retaining 116 jobs. 
• OTJ Architects received between $2M and $5M, arranged by The National Capital Bank of Washington and retaining 216 jobs. 
• Studios Architecture received between $2M and $5M, arranged by PNC Bank and retaining 230 jobs. 

These companies received loans of at least $1M: 

• Paradigm Contractors received a $1.4M loan, arranged by United Bank and retaining 82 jobs.
• Foulger-Pratt received between $1M and $2M, arranged by United Bank and retaining 133 jobs.
• Hoffman & Associates received between $1M and 2M, arranged by EagleBank and retaining 61 jobs.  
• Douglas Development Corp. received between $1M and $2M, arranged by United Bank and retaining 60 jobs. 
• Combined Properties received between $1M and $2M, arranged by Orrstown Bank and retaining 72 jobs.
• The Bernstein Cos. received between $1M and $2M, arranged by United Bank and retaining 101 jobs.  
• UIP Cos. received between $1M and $2M, arranged by EagleBank and retaining 97 jobs. 
• Willco Construction Co. received between $1M and $2M, arranged by United Bank and retaining 54 jobs. 
• Guardian Realty Management received between $1M and $2M, arranged by MainStreet Bank and retaining 70 jobs. 
• Polinger Co. received between $1M and $2M, arranged by Truist Bank and retaining 70 jobs. 
• Davis Carter Scott Design received between $1M and $2M, arranged by Readycap Lending and retaining 73 jobs. 
• Teel Construction received between $1M and $2M, arranged by MainStreet Bank and retaining 18 jobs. 
• Walsh, Colucci, Lubeley & Walsh received between $1M and $2M, arranged by United Bank and retaining 75 jobs. 
• Pillar Construction received between $1M and $2M, arranged by Truist Bank and retaining 171 jobs. 
• Hickok Cole Architects received between $1M and $2M, arranged by Manufacturers and Traders Trust Co. and retaining 93 jobs. 
• Fox Architects received between $1M and $2M, arranged by TD Bank and retaining 73 jobs. 
• McKissack & McKissack received between $1M and $2M, arranged by Bank of America and retaining 88 jobs. 
• Penzance received between $1M and $2M, arranged by KeyBank and retaining 57 jobs.