David Webb of Cassidy Turley tells GlobeSt.com that there is about$500 million worth of new condo development finance deals being worked on in his shop--both debt and equity--that will eventuallytranslate into one million square feet of buildings throughout themetro area.

Much of the activity has been triggered by multifamily prices that quicklystabilized, and then began to rise last summer. "Investors realizedthey could get a better return on a development deal," Webb says.Lenders and equity sources are still selective, he adds. Forexample, for ground-up construction the only non-recourse financingstill available is FHA financing. Also on the equity side, lendersstill expect a greater spread than previous years. Most fundamental of all: condo finance projects need to be able to pencil in as amultifamily project as well. "We are not talking a crazy markethere, but there is a lot of optimism about the ability to get newprojects financed," Webb says.

Cassidy Turley just closed a $14-million construction loan and equityfor 3801 Georgia Ave., a 49-unit condominium construction project inthe Columbia Heights submarket that Donatelli Development willdevelop. The $14-million loan was provided by a regional bank and theequity from local investors.