HFF has arranged $96 million in joint venture equity for the development of EastBanc Inc.’s $110 million Washington, D.C., apartment community. An HFF team featuring Walter Coker, Brian Crivella and Stephen Conley arranged a joint venture between HFF client EastBanc Inc. and Mitsui Fudosan America Inc.
Washington, D.C.-based EastBanc Inc. specializes in the acquisition, redevelopment and management of commercial real estate assets. Mitsui Fudosan America Inc. is a New York City-based real estate investment and development company, and a U.S. subsidiary of Mitsui Fudosan Co. Ltd., the largest publicly-traded real estate company in Japan.
“The challenge was that it was a predevelopment equity request for a long-term equity partner,” HFF managing director Walter Coker told MHN.
“Many equity sources like to come in at construction start. But to bring one to the table willing to be right next to you as you move through design is difficult to find. I think we got around those hurdles due to the strengths of the deal. First, location is special and high profile. Second, the strength of the developer and their unique brand and product distinguishes the development. [The third was] the strength of the relationships between all firms and desire to do more business together.”
The 176-unit property will be built on a northwest Washington, D.C., parcel at 2800 16th Street NW that formerly served as a surface parking lot adjacent to Scottish Rite Center. Groundbreaking is slated for early 2019. Designed by Grimshaw Partners, the structure will feature architectural elements that blend with surrounding buildings, including Scottish Rite Center and the Scottish Rite’s House of the Temple.
Among the building’s features will be an open-air courtyard, resort-style roof-top pool, private dining rooms, fitness center and residents-only café.