District of Columbia

Merchants Capital Secures $115M in Financing for Two Workforce Housing Developments in D.C.

by Julia Sanders February 9, 2022

WASHINGTON, D.C. — Merchants Capital has secured $115 million in total financing for Parkside 8 and Parkside 10, two workforce housing developments located in Washington, D.C. The borrowers, City Interests Development Partners and Ravinia Capital Group, are co-developing the overall project. Bridge Investment Group is managing the Opportunity Zone strategy on behalf of the developers. The construction timeline was not disclosed. Merchants Capital secured $56 million in construction financing through Merchants Bank of Indiana, as well as $59 million in permanent financing through Freddie Mac Non-Low-Income Housing Tax Credit (LIHTC) forward commitments and Freddie Mac permanent loans. Upon completion, Parkside 8 and 10 will feature 230 residential units and approximately 14,000 square feet of retail space. Within the new properties, select units will be reserved for residents earning between 80 percent and 120 percent of area median income (AMI). The multifamily buildings are part of Parkside, a 3.1 million-square-foot master-planned development that will include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space and 860,000 square feet of office space. Parkside will also feature a one-acre park and a new pedestrian bridge that crosses over Kenilworth Avenue and Interstate 295. Additionally, Parkside offers four neighborhood …

February 9, 2022

District of Columbia Southeast

US Economy Added 467,000 Jobs in January, Much Higher Than Expected

by Julia Sanders February 4, 2022

WASHINGTON, D.C. — Total nonfarm payroll employment rose by 467,000 jobs in January, while the unemployment rate changed little from 3.9 percent in December to 4 percent in last month, according to the U.S. Bureau of Labor Statistics. The latest job figures released Friday morning by BLS were significantly higher than Dow Jones’ estimate of nonfarm payroll employment of 150,000, according to CNBC. In addition, BLS revised the job gains for November and December upward by a combined 709,000. In January, job gains increased in leisure and hospitality (+151,000), professional and business services (+86,000), retail trade (+61,000) and in transportation and warehousing (+54,000). Additionally, employment in local government education increased by 29,000 last month but is still down by 359,000 from February 2020, a 4.4 percent difference. Jobs in healthcare increased by 18,000, and there was little change in employment for mining, construction, manufacturing, information, financial activities and other services. Additionally, the amount of employed people who worked from home due to the pandemic increased to 15.4 percent. This follows news of the spread of the Omicron variant of COVID-19 and a high number of cases during the holidays in December. The labor force participation rate increased to 62.2 percent, …

February 4, 2022

Affordable Housing Development District of Columbia Loans Multifamily Southeast

Merchants Capital Provides $141M Financing for Mixed-Income Multifamily Development in Southwest D.C.

by Julia Sanders January 21, 2022

WASHINGTON, D.C. — Merchants Capital has provided more than $141 million in financing for Waterfront Station II, a mixed-income multifamily development currently under construction in the Southwest neighborhood of Washington, D.C. The development team is a joint venture between Hoffman & Associates, AHC Inc., City Partners and Paramount Development. Construction is slated for completion by winter 2023. Situated at 1000 4th Street SW, Waterfront Station II will have 449 apartments, including 313 market-rate units, 68 units affordable to households earning 30 percent of the area median income (AMI) and 68 apartments affordable for households earning 50 percent of AMI. The development will include a single, 12-story apartment building with approximately 29,000 square feet of retail, educational and commercial space on the ground level with below-grade parking. The commercial tenants include AppleTree Public Charter School, a D.C.-based early childhood education provider, as well as a neighborhood restaurant by Good Company Doughnuts. The project has an additional 7,000 square feet of retail space available for lease. Designed by architect Torti Gallas Urban with interiors by Hickok Cole, the project will include more than 19,000 square feet of outdoor and interior amenity space across four floors. Community amenities will include a coworking and …

January 21, 2022

District of Columbia Retail Southeast

Holiday Sales in 2021 Increased by 14.1 Percent from 2020, Says NRF

by Julia Sanders January 18, 2022

WASHINGTON, D.C. — The National Retail Federation (NRF) has reported that retail sales during last year’s holiday season totaled $886.7 billion, a 14.1 percent increase from 2020 ($777.3 billion). The 2021 numbers were greater than what the NRF had predicted and sets a new record despite ongoing problems such as supply chain issues and the spread of the COVID-19 Omicron variant. Retail sales were tracked from Nov. 1 to Dec. 31 and exclude data from automobile dealers, gas stations and restaurants. Retail sales fell by 2.7 percent seasonally adjusted in December from November but increased by 13.4 percent unadjusted year-over-year. The sector with the biggest sales gain during the holidays were clothing and clothing accessory stores, which saw an increase of 33.1 percent. Additionally, sporting goods stores were up 20.9 percent; general merchandise stores were up 15.2 percent; furniture and home furnishings stores were up 15 percent; building materials and garden supply stores increased its sales by 13.5 percent; and health and personal care stores were up 9.6 percent. Also online and other non-store sales were up 11.3 percent, which falls in line with NRF’s prediction made in October of a growth rate between 11 to 15 percent. “Consumers were …

January 18, 2022

District of Columbia Retail Southeast

NRF Supports Supreme Court Decision to Halt Vaccine Mandates for Non-Healthcare Related Businesses

by Julia Sanders January 17, 2022

WASHINGTON, D.C. — The National Retail Federation released a statement on Thursday, Jan. 13 saying the organization agreed with the U.S. Supreme Court’s decision about vaccine mandates. The Supreme Court on Thursday blocked the Biden administration from passing a bill that would require employees at large private companies to either get the vaccine or get tested regularly for COVID-19, as well as wear masks in the workplace. The Biden administration’s vaccine mandate would require vaccinations for those who worked at a company with 100 or more employees. In a separate ruling, the court allowed a vaccine-mandate for healthcare workers in a ruling of 5-4. NRF joined more than 26 other trade associations last week to present oral arguments before the court on the legality of the mandate. “While NRF has maintained a strong and consistent position related to the importance of vaccines in helping to overcome this pandemic, the Supreme Court’s decision to stay OSHA’s onerous and unprecedented [Emergency Temporary Standard] ETS is a significant victory for employers,” says David French, NRF’s senior vice president of government relations. Many were worried that with vaccine requirements, some employees may rather quit than get the vaccine, ultimately causing higher unemployment numbers. After …

January 17, 2022

Acquisitions District of Columbia Florida Healthcare Southeast Top Stories

NREA, Catalyst Acquire Two National Healthcare Portfolios Totaling 1.2 MSF

by Taylor Williams January 17, 2022

WASHINGTON, D.C. AND PENSACOLA, FLA. — A joint venture between Washington, D.C.-based National Real Estate Advisors (NREA) and Florida-based Catalyst Healthcare Real Estate has acquired two national healthcare portfolios totaling approximately 1.2 million square feet Together, the portfolios comprise 40 properties across 13 states, the majority of which are located in Sun Belt markets. At the time of sale, the portfolios had a combined occupancy rate of 92 percent. Of that 1.1 million square feet of occupied space, about 88 percent is leased to regional healthcare systems and physician groups. The acquisition and recapitalization represent a total investment of approximately $420 million. The sellers were also not disclosed. “These transactions underscore our commitment to investing in highly competitive, diverse markets that seek to generate long-term, healthy returns for our clients,” says Jeffrey Kanne, president and CEO of NREA. “This acquisition not only significantly scales our medical office portfolio but furthers our geographic diversification.” “Our joint venture strives to positively impact healthcare delivery by investing strategic capital with a partnership-like mentality,” adds Chad Henderson, founder and CEO of Catalyst. “The closing of the portfolios was a significant first step for our joint venture and paves the way for the future of …

January 17, 2022

District of Columbia Market Reports Maryland Restaurant Retail Southeast Southeast Market Reports Virginia

Grocery Chains and Other Retail Categories are Making Hay in Mid-Atlantic Region

by John Nelson January 11, 2022

The Washington, D.C., and Baltimore markets, when combined, represent the fourth-largest metropolitan region in the nation by population, and retailers are taking notice again. Grocery-anchored projects are the most prevalent in the headlines. For example, the first of nearly 20 Amazon Fresh locations has opened in the area. Additionally, Wegmans’ smaller format rollout plan is active with its first location in Stonebridge’s Carlyle Crossing in Alexandria opening spring 2022, along with Roadside Development’s City Ridge Project at the former Fanny Mae Headquarters in Northwest D.C. Former Shoppers Food Warehouse boxes also continue to get absorbed by new grocers. A less-covered sector of the grocery market is the international markets category, which remains very active in the region. There are 29 different banners across the region that exceed 10,000 square feet in size, with the newest entrant being Oh! Markets in Northern Virginia. Other international market newcomers, including 99Ranch and Enson Market, are also searching for space. With the immense ethnic diversity of the region, we expect investors to start taking notice of this sector with their acquisition appetite, just as they have in other regions like Texas and Florida. Publix, a customer favorite, is in the early stages of identifying …

January 11, 2022

District of Columbia Southeast

US Economy Added 199,000 Jobs in December, Lower than Previous Month and Below Wall Street Expectations

by Julia Sanders January 7, 2022

WASHINGTON, D.C. — Total nonfarm payroll employment rose by 199,000 jobs in December, while the unemployment rate declined from 4.2 percent in November to 3.9 percent, according to the U.S. Bureau of Labor Statistics (BLS) report that came out Friday, Jan. 7. A closer look at the data shows that employers added 211,000 private sector jobs, while the government shed 12,000 jobs. The employment numbers were much lower than the Dow Jones’ estimate of nonfarm payroll employment of 422,000 but the unemployment rate was below the predicted 4.1 percent rate, according to CNBC. In February 2020, the last full month not impacted by the COVID-19 pandemic, the unemployment rate was 3.5 percent. The news outlet also noted the BLS report included data from Dec. 12, which is when some of the highest reported cases of Omicron variant were found. The highest amount of job gains last month was in the leisure and hospitality sector, which increased by 53,000 jobs. Other notable job gains occurred in professional and business services (+43,000), manufacturing (+26,000), construction (+22,000) and in transportation and warehousing (+19,000). Last month, little to no change occurred in employment for the retail trade, financial activities, healthcare, government and information and …

January 7, 2022

Affordable Housing District of Columbia Loans Lument Multifamily Southeast

Lument Provides $16.9M in Freddie Mac Financing for Affordable Housing Project in D.C.

by Julia Sanders December 21, 2021

WASHINGTON, D.C. — Lument has provided two Freddie Mac tax-exempt loans (TEL) totaling $16.9 million for the development of 1515 North Capitol Apartments, a 15-story affordable housing development in Washington, D.C. Construction for the project is slated to be complete in 27 months. The borrower is So Others Might Eat (SOME), a Washington, D.C.-based local nonprofit organization that provides services to those facing poverty and homelessness. 1515 North Capitol will feature 136 affordable studio units, with 75 units subsidized through D.C.’s Local Rental Supplement Program (LSRP), 61 units restricted to tenants earning 50 percent of area median income (AMI) and three units reserved for staff. The units features will include vinyl plank flooring, ranges with vented hoods, microwave ovens and garbage disposals. Community amenities will include a community room, conference and meeting rooms, classrooms, library, computer room, fitness center, bike storage, two roof terraces and a laundry room on every residential level. Lument structured two portions of debt for the Freddie Mac TEL. The first part of financing was in the amount of $11.8 million and featured a 17-year term and 40-year amortization schedule. The other loan was in the amount of $5.1 million based on the LSRP overhang to …

December 21, 2021

Acquisitions District of Columbia Office Southeast

KBS Sells Three-Building Office Park in Metro D.C. for $106M

by Julia Sanders December 10, 2021

FAIRFAX, VA. — KBS has sold Willow Oaks Corporate Center, a 584,147-square-foot, Class A office park in Fairfax, which is about 18.7 miles west from Washington, D.C. Bridge Investment Group purchased the property for $106 million. KBS owned the property via KBS Real Estate Investment Trust II. Built in three phases in 1986, 1989 and 2003, Willow Oaks Corporate Center is a three-building office park located near the intersection of Route 50 and the Capital Beltway. The office center has obtained WiredScore Gold and Silver certifications, which has to do with the property’s wired infrastructure, internet connectivity and resilience. The property also features EV car-charging stations and an energy-management system. Building amenities include bike storage, an outdoor picnic area, carwash and detail service, private tenant balconies, concierge service and multiple bus shuttles. Located at 8281-8399 Willow Oaks Corporate Drive, the property is 7.4 miles from George Mason University, less than one mile from Inova Fairfax Hospital and 1.1 miles from the Mosaic District Town Center, a 31-acre mixed-use development with retail and dining options. The property is also situated near several retailers and restaurants such as Great Wall Supermarket, McDonald’s, Starbucks, Sweetwater Tavern and CVS/pharmacy. Under KBS’ previous ownership, the …

December 10, 2021

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