New Rendering, Funding, Partner for Patterson Mansion Redevelopment
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The SB-Urban redevelopment of the Patterson Mansion in Dupont Circle, transforming the temporary White House of Calvin Coolidge into micro units, has landed $31M in funding and a new JV partner. The money will come from Citizens Bank, EVP Tim Leon confirmed to Bisnow last week. Tim tells us Citizens has invested in micro units in New York and San Francisco and is confident the model will play in DC. The building (and the addition shown in the new rendering above) will house about 90 micro units, but they're more than your typical tiny studio. The buildings will be very highly amenitized, Tim says. "It's really sort of an elite, high-end product for the target market," for executive level people. Last week, CBD LLC was brought on with SB-Urban and Rooney Properties as another JV partner.
Tim, whom we snapped in 2012 speaking at one of our events, says Patterson Mansion is expected to start construction soon, with the first units leasing by early 2017. If there's enough interest, Tim says, some units could be ready by late 2016, in time for the next presidential inauguration. Citizens Bank did a "deep dive" into the micro unit industry—and SB-Urban's business plan, centered around micro units—and came out satisfied. "Generally, in the multifamily sector the trend is for smaller units and more amenities. Research has shown that Millennials respond favorably to that product design." But, he says, while Patterson Mansion residents will have a luxury experience "almost equivalent to a very high-end hotel like the Four Seasons," it's the Baby Boomers who will likely pay rents on the leases between three and 12 months long.