WASHINGTON, DC-Donatelli Development has secured equity financing for the next phase of Highland Park, a 144-unit multifamily project located above the Columbia Heights metro station in the District. Cassidy Turley recapitalized the mezzanine and senior debt for the existing 229-unit building, which is 99% leased, and arranged the $116-million construction financing for the new building.
The equity for the new development and mezzanine debt for the existing building was provided by Invesco Real Estate and the senior debt was restructured with Key Bank. David Webb and Jamie Butler of Cassidy Turley acted as exclusive advisor to Donatelli Development on the equity and debt financing. Highland Park has a 20% affordable component and construction is scheduled to begin in the first quarter of 2011.
Debt and equity for development in the DC area has been returning--even in pockets outside of the Beltway, Webb told GlobeSt.com in an earlier interview. Recently Webb, along with colleague Jamie Butler, helped to arrange $68 million in financing on behalf of Redbrick Development Group for the Heights at Groveton, a 290-unit apartment development project in Alexandria, VA. For that deal, JP Morgan is providing a senior debt construction loan for 60% of the amount, or $40 million, and CBRE Investors and an affiliate of Redbrick Partners are providing the majority of equity.
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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.
