Douglas Development says it has secured a $65 million construction loan and $41.6 milion in preferred equity to build a 354-unit multifamily project in Northwest D.C.’s Takoma Park neighborhood.
In a March 7 statement, Douglas said it is now ready to start construction. CBG Building Co. will be the general contractor for the project designed by architect Eric Colbert & Associates. Douglas completed another Takoma Park project with 102 multifamily units in 2016.
A consortium of United Bank, Sandy Spring Bank and Metropolitan Bank provided the loan, while EB5 Capital provided the preferred equity. Commercial Observer (CO) reports that the loan has a four-year initial term and the deal’s loan-to-cost ratio is around 50%, Commercial Observer reported.
“The ability to execute in the current market conditions is a testament to the strength of the sponsorship as well as the project,” EB5 Capital senior vice-president Jon Mullen said in a statement.
Douglas acquired the site at 6830 and 6896 Laurel St. NW from Washington Theological Union for $17.5 million in 2013, Bisnow reported then. The buildings are now vacant.
The developer revealed plans in February 2022 to develop a multifamily building within the site’s existing zoning that would range from 45 to 63 feet in height, according to UrbanTurf. The project would include 28 inclusionary zoning units reserved for those making between 60% and 80% of the area median income.
“We look forward to bringing our Takoma development to fruition with the support from our partners in this deal,” Douglas managing principal Norman Jemal said in a statement. “The project will provide a new residential option in a historic area, while also offering an affordable component that is in accordance with DC’s inclusionary zoning program.”