Standard Real Estate Acquires Two DC Shopping Centers
Mixed-Use, $650M redevelopment will continue in Northeast Heights.
Standard Real Estate Investments has acquired two shopping centers in Northeast Washington DC from Cedar Realty Trust for an estimated $47M.
Standard, a minority-owned firm with offices in DC and Los Angeles, will continue with ongoing plans to redevelop the property. Financing for the transaction was provided by the Black Economic Development Fund, managed by affiliates of the Local Initiatives Support Corp,) and Forbright Bank.
Forbright provided a first mortgage for the acquisition and the Black Economic Development Fund (BEDF) provided $10M in mezzanine funding.
“These projects speak not only to our business philosophy of creating value in underinvested communities by importing new economic activity, but our strong commitment to the DC region over the long term.” Standard President Jerome Nichols said, in a statement.
In aggregate, the two centers—Senator Square and East River Park—are entitled and programmed for a $650M mixed-use redevelopment that will encompass 1.500 residential units, including 300 units designated as affordable, and 120K SF of community-oriented retail.
The 13-acre site at the intersection of Minnesota Ave NE and Benning Road comprises the lion’s share of the Northeast Heights master plan.
Trammell Crow will continue to develop a 257K SF build-to-suit office building on the site, to be occupied by the new HQ of DC’s Department of General Services.
Cedar Realty Trust broke ground with Trammell Crow on its Ward 7 portion of the Northeast Heights master plan in March 21, with plans to redevelop Senator Square and East River Park into the mixed-use development.
Cedar Trust was acquired this summer by WHLR and unloaded most of its grocery anchored assets, including the two Ward 7 supermarkets, before the sale was complete.
National Housing Trust will team with Standard to develop 110 of the project’s 300 affordable units on the site; the team will build a standalone building for the affordable units. The site is adjacent to the spec building Trammell is developing and within walking distance of the Minnesota Ave. Metro station.
Nichols, together with Terrance Williams, a Principal with Standard and formerly a Trammell Crow Company executive, will oversee both Washington DC developments.
The two projects represent over 2 million square feet of development and approximately $1 billion in value, making Standard’s development pipeline one of the largest in the District of Columbia.
The firm plans a multi-phase approach to redevelop Northeast Heights and has once again partnered with the National Housing Trust to develop a standalone affordable housing building, along with affordable units that will be mixed into the market rate buildings.