Douglas Development Lands $47M Refinancing for Moxy Hotel in DC
Douglas Development Corporation’s original loan for the 200-key, 14-story hotel at 1011 K Street NW in Downtown Washington, DC was comprised of $35-million loan held by BHI and a $10.6-million mezzanine piece held by another investment firm.
WASHINGTON, DC—BHI, the US division of Bank Hapoalim of Israel, has provided a $47-million bridge loan to refinance Douglas Development Corp.’s recently opened Moxy hotel here.
Douglas Development Corporation’s original loan for the 200-key, 14-story hotel at 1011 K Street NW in Downtown Washington, DC was comprised of $35-million loan held by BHI and a $10.6-million mezzanine piece held by another investment firm.
BHI reports it upsized its lending position by taking out the mezzanine lender and providing a new $47-million bridge loan to refinance the property. BHI is headquartered in New York City and also operates US offices in Woodcliff Lake, NJ; Aventura, FL and Downtown Los Angeles and Beverly Hills, CA.
Mimi Vu, VP of BHI Commercial Real Estate, who collaborated with the borrower on the refinancing of the loans, says, “This is going to be another success story. This was DDC’s first hotel development and we stood behind this project from the start—we believe in their ability to deliver high quality product given the extensive real estate experience and knowledge that they possess.”
Norman Jemal, principal of Douglas Development Corp., states, “With the support of BHI we were able to enter the hospitality space. BHI’s expertise and assistance in refinancing our existing credit facility is evidence of their trust and confidence in our new business. They are as committed to our success and growth as we are.”
Douglas Development is one of the dominant real estate investment firms in the Washington, DC region. The firm’s current portfolio totals more than 10 million leasable square feet of office and retail space, as well as collection of multi-family buildings and more than 5 million square feet of developable real estate in the pipeline.
The Moxy hotel in Washington, DC officially opened for business on Nov. 26. The property is part of the Moxy Hotels’ ongoing expansion. Moxy Hotels, which is Marriott International’s experiential hotel brand, is growing its portfolio in the Southeastern U.S. with the opening of Moxy Chattanooga Downtown in November and the anticipated openings of Moxy Atlanta Midtown, Moxy Memphis Downtown, Moxy Nashville Vanderbilt at Hillsboro Village, Moxy Nashville Downtown and Moxy Louisville that are all expected to open this year.
Last month, national real estate investor and developer Lightstone closed on $73 million in financing from Canyon Partners Real Estate LLC and CapitalSource, a division of Pacific Western Bank, to develop the a seven-story, 202-key Moxy South Beach in Miami.
Moxy currently has more than 35 hotels currently operating in North America, Europe and Asia Pacific.