Hoffman-Madison Secures $113M for Parcel 5

The Wharf

WASHINGTON, DC—Hoffman-Madison Waterfront, the master developer of The Wharf, announced it has secured $113 million in construction debt financing for Parcel 5 from two banks, SunTrust Bank and M&T Bank. It is a telling transaction for both the project itself and the banks as the latter is become more skittish about lending to commercial real estate projects, especially construction finance.

The financing will be used to develop a $194-million hotel site at The Wharf that will consist of a 175-key Canopy by Hilton and a 237-key Hyatt House. The two hotels, which will total 412 rooms and more than 40,000-square feet of street-level retail, are scheduled to open in Fall 2017.