WASHINGTON, DC—Last week locally-based Rock Creek Property Group announced it closed on its second fund, raising or securing commitments of $60 million. Levered up, the fund is expected to have a total purchasing power of $200 million to $300 million, principal Gary Schlager tells GlobeSt.com.
So far fund II has made three purchases of properties that are being torn down and redeveloped on spec. They are illustrative of the fund's duel mission approach of acquiring value add and/or income-streaming properties.
646-654 H St., NE
One project will be located at the corner of 7th and H streets, NE, next to the Whole Foods under construction there. The upscale grocery store will be serving some 1,000 residential units that are also under construction or newly delivered, including the commercial and condo building that Rock Creek plans to build over the plot of land at 646 through 654 H St., NE.
The new building will have roughly 25 units and 14,000 square feet of commercial space, Schlager says. Rock Creek
"We will be demolishing much of that corner for the building." At the moment the company is still in the process of getting permits. It plans to break ground in Q1 of 2016.
"We expect to bid the project out to general contractors within 30 days," Schlager says.
Rock Creek has had the site for a while and transferred it into the second fund.
6833 Fourth St., NW – aka the Takoma Theater
Rock Creek property is renovating the Takoma Theater and adding a floor. It is a 23,000-square foot spec renovation and Schlager says he doesn't know yet what possible use it could be.
1415 22nd Street, NW
This is a renovation as well. The existing building on the site is a defunct bar, which Rock Creek plans to gut and then develop it into a restaurant/retail use or boutique office space. The company is working with the Historic Preservation office on the design, which will include a new glass façade to the structure and an additional 10,000 square feet.
Meanwhile, Schlager says, the fund has two additional assets under contract.
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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.
