ROSSLYN, VA-Abdo Development has secured financing for a120-unit luxury condominium project set to be developed in theRosslyn Ballston corridor. Federal Capital Partners provided theequity/mezzanine debt for the project and United Bank provided thesenior debt. David Webb and Jamie Butler of Cassidy Turley arrangedthe financing for Abdo. Cassidy Turley did not return a call toGlobeSt.com in time for publication.

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In an earlierinterview with GlobeSt.com, Webb reported thatconstruction financing--including condo projects--was picking up inthe DC area. Lenders are still cautious, he said. Forinstance, while more lenders are starting to provide financing forcondo construction, the majority still insist on having the dealpencil in as an apartment building as well.

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But there have been cases in which the lender was willing tofinance a deal as a condo project because the units were large orotherwise unique and not well suited for an apartment. That thereis debt and equity available for those transactions, he said, wasvery telling. Cassidy Turley’s finance pipeline for the DC areaincluded between $300 million and $400 million in condo finance,Webb also said.

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As the DC area continues to addjobs, lenders will step up lending even further,predicts Ari Firoozabadi, vice president of investments at Marcus& Millichap Real Estate Investment Services. “A year agoconstruction financing for any type of project was a non starter,”he tells GlobeSt.com. “Now we are adding more and more jobs andthere is a supply constraint for both apartments and condos. So,lack of supply, plus growing demand equals opportunity for lenders,which is why we are seeing them put debt and equity into welllocated core assets.”

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