WASHINGTON, DC-This week was a good one for the DC development community, not to mention local politicians. Two new projects broke ground, suggesting that the area’s construction pipeline may finally be moving into a period of regular activity.

The projects, briefly, are the redevelopment of 7550 Wisconsin Ave., in Bethesda, MD and a new mixed-use project at Catholic University in the District.

However, global economic events are threatening to douse the good mood these projects evoke. Says David Webb, senior managing director for Cassidy Turley’s Capital Markets group: “Construction and redevelopment finance is available today, but my suspicion is that it will soon become harder to find, even for the DC area market.” There are a couple of reasons for that, he tells GlobeSt.com. One, more projects are coming on line, intensifying competition for financing. Two, some banks are exiting the lending community, namely due to events in Europe. “I can see the lending environment becoming tighter over the next year,” Webb says.

Certainly there is ample evidence of a changing atmosphere. The recent Federal Reserve senior loan officer survey found that US banks were tightening standards for loans made to European banks. Also, lending standards, in general, remained unchanged for the quarter. In addition, the three-month London Interbank Offered Rate has reached 1%, its highest level in more than two years, the Guardian just reported. 

Such grim news, though, is not keeping the DC commercial real estate community at home for the  groundbreakings that do occur. About a dozen corporate executives and Maryland officials broke a row of windows with great ceremony at the Wisconsin Avenue office project, a joint venture of Akridge and Rockwood Capital, LLC, who bought the vacant property from the General Services Administration last spring.

The 120,000-square-foot building will undergo a complete renovation to feature floor-to-ceiling glass and a green roof. Besides the corporate executives, also attending the morning event were Maryland Comptroller Peter Franchot and Montgomery County Executive Isiah Leggett, along with representatives of EagleBank, which has provided financing for the project.

At Catholic University, the Bozzuto Group, Abdo Development and Pritzker Realty Group broke ground on a $200 million multiphase development. Local politicians attending that event included DC Mayor Vincent Gray and DC Councilmember Harry Thomas, Jr. and Chairman Kwame Brown.

The project is located on five city blocks in Washington, DC next to the Brookland-CUA Metrorail station. Financing consists of a construction loan provided by Bank of America, TD Bank and Fifth Third Bank as well as equity funded by Bozzuto, Abdo and Pritzker.

It will consist of 720 residential units, 45 townhomes, 80,000 square feet of street-level retail, 15,000 square feet of artist studio space, a 3,000-square-foot community arts center, and 850 parking spaces.