DC JV Begins Mixed-Use Property in Takoma Neighborhood
Federal Capital Partners, Level 2 Development LLC and SGA Cos., have formed a joint venture to develop Takoma Central, a mixed-use project with 156 rental apartment units and ground-floor retail in the Takoma Park.
Washington, D.C.—Federal Capital Partners (FCP), Level 2 Development LLC and SGA Cos., have formed a joint venture to develop Takoma Central, a mixed-use project with 156 rental apartment units and ground-floor retail in the Takoma Park neighborhood of northern Washington, DC. FCP is a privately held real estate investment company with more than $3 billion in assets; Level 2 Development specializes in residential and mixed-use projects; and SGA is the project architect.
The JV anticipates a total cost of about $36 million for the project. “Over the last six months the lenders have become more selective mainly because they were so active in the first half of 2011,” Stephen M. Walsh, senior vice president-capital markets of Federal Capital Partners, tells MHN.
“Takoma Central has received a strong reception due to the metro project’s shovel-ready status and Metro location, combined with FCP’s sponsorship,” Walsh continues. “Lenders are looking for well-conceived projects with strong financial sponsors.”
Walsh characterizes Takoma Park (also called Takoma), which is on the DC side of the line between the District and Maryland, as a high-barrier-to-entry market with little to no new apartment supply projected in the near future. Phase one construction of Takoma Central has already begun, while phase two will begin later this year, according to the developers. Completion is slated for the fourth quarter of 2013.
The development will include 8,000 square feet of retail space along Carroll Street, a fitness center, business center, outdoor terrace, community room, bike storage and other amenities. Its apartments will feature granite countertops, stainless steel appliances, washer and dryer, and balconies in some units.