WASHINGTON, DC-NOVO Development Corp. has acquired an existing used car lot on Capitol Hill with an eye to building a five-story, 77-unit residential building there. It tapped MAC Realty Advisors to secure $21 million in financing for both the acquisition and the construction.
The car lot is located at 1600 Pennsylvania Ave., SE. The acquisition financing was secured from a boutique private equity fund. MAC also placed a senior construction loan from a regional bank for the transaction, which closed several days ago. MAC's Andrew McAllister, Bruce Levin, and Ben Lazarus worked on the transactions.
There were multiple joint-venture partners interested in the deal, which allowed NOVO to move forward with the predevelopment and entitlement work, MAC reports. "Both passive and active equity investors were interested in moving forward," says McAllister, in a prepared statement.
NOVA targeted this site because it was one of the few available parcels in Capitol Hill ready for residential development. Amenities in the Southeastern portion of Capitol Hill include a Harris Teeter grocer at Jenkins Row and access to the Potomac Avenue Metro Station.
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