Now at least one broker is reporting a similar--albeit still nascent--trend for multifamily development. Christopher J. Doerr, Grubb & Ellis' Vice President of Multifamily Investments, tells GlobeSt.com that he has three multifamily development deals nearing the contract stage in the DC area. In large part, these deals are being supported by the availability of HUD financing: the agency's.
The 221D4 loan program provides non-recourse financing of up to 90% of construction costs at a good rate, making it "just about the only game in town for these types of deals," Doerr says. The deals also are a positive sign for the area, Doerr believes. "[There] are only three, and the contracts haven't been signed yet, but I think it bodes well for future activity. We haven't seen any multifamily new development for some time now."
The three are a mixed use project in Arlington that consists of a supermarket and 160 apartment units. JPI had this particular project under contract a few years ago but eventually had to step away from it, Doerr said. Another project is at the Capitol Heights metro station that will deliver 183 units. The third is at the Naylor Road metro stop on the Green Line, for 280 units.
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