Abdo Secures Construction Financing for Condos 

ROSSLYN, VA-Abdo Development has secured financing for a 120-unit luxury condominium project set to be developed in the Rosslyn Ballston corridor. Federal Capital Partners provided the equity/mezzanine debt for the project and United Bank provided the senior debt. David Webb and Jamie Butler of Cassidy Turley arranged the financing for Abdo. Cassidy Turley did not return a call to GlobeSt.com in time for publication. 

In an earlier interview with GlobeSt.com, Webb reported that construction financing--including condo projects--was picking up in the DC area. Lenders are still cautious, he said. For instance, while more lenders are starting to provide financing for condo construction, the majority still insist on having the deal pencil in as an apartment building as well.

But there have been cases in which the lender was willing to finance a deal as a condo project because the units were large or otherwise unique and not well suited for an apartment. That there is debt and equity available for those transactions, he said, was very telling. Cassidy Turley’s finance pipeline for the DC area included between $300 million and $400 million in condo finance, Webb also said. 

As the DC area continues to add jobs, lenders will step up lending even further, predicts Ari Firoozabadi, vice president of investments at Marcus & Millichap Real Estate Investment Services. “A year ago construction financing for any type of project was a non starter,” he tells GlobeSt.com. “Now we are adding more and more jobs and there is a supply constraint for both apartments and condos. So, lack of supply, plus growing demand equals opportunity for lenders, which is why we are seeing them put debt and equity into well located core assets.”