Art Place Fort Totten

Prudential Mortgage Capital Provides $115.8M Construction Loan for Affordable Housing in D.C.

by John Nelson

WASHINGTON, D.C. — Prudential Mortgage Capital Co. has provided $115.8 million in permanent financing through Freddie Mac for Art Place at Fort Totten, a mixed-income and mixed-use development in northeast Washington, D.C. The borrower is an affiliate of The Morris and Gwendolyn Cafritz Foundation, an independently run foundation focusing on providing grants for investments in the Washington, D.C., area.

When completed, Art Place at Fort Totten will include 520 rental units and 103,502 square feet of commercial space. It is the first phase of a three-phase development that will be located adjacent to the Fort Totten Metro Station. The completed project will include a fitness center, restaurant, children’s museum and a community center for the arts.

Of the 520 residential units, 121 will be designated affordable, with long-term income and rent restrictions. The remaining units will be market-rate.

“The scale and design of this property coupled with the longstanding commitment of the borrower to serving Washington, D.C., will make this a dynamic development for the Fort Totten community,” says Alex Viorst, a principal with Prudential Mortgage Capital Co.’s affordable housing business. “When this property is completed, it will bring high-quality market rate and affordable housing to the community, along with new commercial and retail opportunities for neighborhood residents.”

Prudential Financial Inc.’s $400 million impact investment portfolio was also a participant in the financing of this transaction, providing $25 million. The impact portfolio directs investments to companies, projects and funds that create positive social change and help individuals and communities achieve economic success. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial Inc. (NYSE: PRU).

“We are pleased to partner with Prudential Mortgage Capital Co. on this important investment,” says Lata Reddy, vice president of corporate social responsibility at Prudential Financial and president of The Prudential Foundation. “For many households, transportation and housing are the two largest expenditures, and this project will lessen both burdens on its residents. Prudential is focused on helping working families provide for their basic needs, so projects like Art Place are a perfect fit.”

Prudential Mortgage Capital Co. is a national full-service, commercial and multifamily mortgage finance business with more than $79 billion in assets under management and administration as of March 31, 2014. The company maintains a loan-servicing portfolio of approximately $76.7 billion, as of June 30, 2014.

— John Nelson

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