In general, just being able to close a loan these days--even atthe more stringent terms required now by most financiers--can bereason for a pat on the back. This particular transaction, though,stands out to McAllister as it is one of the most aggressive instructure and price that he has seen since the beginning of thecredit crunch. A three-tiered structure, "the tranches were placedat pricing that would be difficult to match in today'senvironment," he tells GlobeSt.com. The first tranche went to 75%of cost; the second to 85%, he says. Both of these were floatingrate loans. The third tranche was a fixed rate, at 95% of cost.Total development costs for the project are north of $90 million,he says. McAllister attributes the package to a "great sponsor andgreat project".


The project is called View14 Apartments, and is being developedby Level2 Development and Centrum Properties. Located in the UStreet Corridor at the intersection of Belmont and 14th streets,View14 will have 185 luxury units and over 30,000 sf ofground-level retail and underground parking. The project also hasan affordable housing component; with 12 units available tolow-income renters. Development of View14 Apartments is also linkedto a $1 million in funding to a nearby apartment building that lostits affordability status. Sankofa Tenants Association will use thefunds to purchase 48 low income units in the CresthillApartments.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.