D.C. Opportunity Zone Developer Closes Financing, To Break Ground Soon On 191 Apartments
A major Northeast D.C. development continues to move forward despite the coronavirus pandemic and economic crisis, with plans to break ground on a new apartment building in the coming weeks.
CityInterests closed its financing deal Tuesday for the next phase of its 3.1M SF Parkside development near the Minnesota Avenue Metro station, CityInterests Managing Partner Peter Farrell tells Bisnow.
The developer, in partnership with Ravinia Capital Group, plans to break ground the week of May 4 on the project, a 191-unit market-rate apartment building branded as Eleven Parkside. D.C. deemed construction an essential operation and allowed it to continue despite the stay-at-home order put in place to stem the spread of the coronavirus.
"To say this is a milestone for Parkside in Ward 7 is an understatement," Farrell said. "Trying to get this deal closed in these turbulent economic times was a herculean lift."
The team received equity investment through the opportunity zone program from a high net worth individual. The team closed Tuesday on a $50.3M loan provided by JLL's multifamily lending arm through the Department of Housing and Urban Development's 221(d)(4) program.
Duane Morris partner Brad Molotsky represented CityInterests in the opportunity zone deal, and Nixon Peabody represented it on the loan transaction. Grimm and Parker Architecture designed the building and Bozzuto Construction Co. is serving as the general contractor.
"I can absolutely attest to the strength and benefit of the opportunity zone program as contributing mightily to making Parkside an attractive investment for the high net worth and institutional opportunity zone investors we've been talking to," Farrell said.
CityInterests in 2004 acquired the 26-acre site, sitting near the intersection of Route 295 and Benning Road NE, across the street from the Minnesota Avenue Metro station.
The developer has since built several buildings on the site, including a 98-unit senior living facility, a 186-unit affordable apartment building and 300 townhouses. CityInterests last year retained Cushman & Wakefield to put a separate portion of the development site up for sale, touting its location in an opportunity zone.