WASHINGTON, DC-A year ago, many in the District considered it immune to the ebb and flow of the capital markets. A tier one market that is also a global destination city and home to the federal government would always be attractive to capital. That was then. While the District is faring better than most cities, projects are definitely feeling the pinch. For some developers, the answer is to move to plan B with projects still on the white board. Anecdotally, some brokers and developers are reporting that smaller sized projects–$50 million and less–appear to be the sweet spot for a lot of lenders now.

“I don’t want to de-emphasize or minimize the severity of the credit environment right now–it is very tough,” one locally-based developer tells GlobeSt.com. “A lot of lenders are still sitting on the sidelines–that is very clear.” Still, this person continues, “there is money to be had for smaller projects–$50 million seems to be the unofficial ceiling for some; other lenders are only going as much as $25 million.”

For value add projects, financing is almost impossible to get, a broker tells Globet.com, agreeing with the observation that $50 million has become an unofficial ceiling for many lenders. “Anything over $100 million is at a standstill.”

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