The Wharf Lands $800M Refinancing Deal From Wells Fargo-Led Syndicate
The development team behind The Wharf has just secured a refinancing deal it says is one of the largest in D.C. history.
Hoffman-Madison Waterfront, along with equity partner PSP Investments, announced Monday it secured a $800M loan with a Wells Fargo-led banking syndicate that includes Morgan Stanley, Blackstone and other financial institutions.
Eastdil Secured arranged the financing on behalf of the development team. Hoffman-Madison retained Eastdil in November to seek the loan, which is backed by the majority of The Wharf's Phase 1. The first phase, which delivered in October 2017, includes three hotels, two office buildings, two apartment buildings, two condo buildings, a concert venue and dozens of restaurants and retailers.
The deal was structured as a four-year term loan with multiple extension options. The development team will use the capital to pay off its Phase 1 construction loans and fund part of The Wharf's second phase. The team broke ground in March on Phase 2, which will include three office building totaling 625K SF, 225 apartments, 96 condos, 131 hotel rooms and 109K SF of retail.
Hoffman-Madison Waterfront said in its announcement the deal represents one of, if not the largest, single-asset loans in D.C. history, adding that it demonstrates the success of The Wharf's first phase.