Funding of about $112 million, which was arranged by Berkadia, has been secured by Maryland-based Foulger-Pratt for making two properties in Washington, D.C.
A total of $22.5 million funding was arranged by Berkadia for making Foulger-Pratt’s 72 Flodia Ave, and another 166,000 square-foot storage facility will be developed in the NoMa district.
As per Berkadia, the property is “in a submarket that has historically been drastically underserved.” Recently Foulger-Pratt leased about 35,000 square feet at its Park Potomac in Maryland.
For developing Beckert’s Park at 415 14th St. SE, which is also known as Capitol Hill Apartments on 14th, Berkadia secured $89.5 million in construction refinancing via a big national bank.
Two blocks from Potomac Avenue Metro station, the 2.8-acre site is at present occupied by a 50,284-square-foot Safeway grocery store. The property will be redeveloped by Foulger-Pratt and turned into a 325-unit, five-story apartment community, and will have an additional retail space of 8,000 square feet.
Berkadia Director Jonathan Pratt secured the loans for both transactions. “This is a particularly complex transaction involving a lot of moving parts,” Pratt said in a statement.
Commercial Appraiser FW: Berkadia Secures $112M Loan for DC Portfolio https://t.co/QaJ5SnRq7e
— @appraisercommer (@AppraiserCommer) November 26, 2018
Across Washington region, the net year-to-date apartment absorption is over 12,000 units and average region-wide occupancy is 95.9 percent, as per a third-quarter report from Newmark Knight Frank. “Strong growth in high-paying jobs… is projected to spearhead Class A multi-housing demand over the next five years,” states the report.