DC Multifamily-to-Student Housing Conversion Lands Financing

HH Fund has obtained a $21 million bridge loan for The Lanes at Union Market, a 110-unit multifamily-to-student housing conversion project in Washington, D.C. M&T Realty Capital Corp. provided the financing.

The two-year, interest-only loan will allow HH Fund to have the necessary time to implement their business plan. The owner acquired the asset at a foreclosure auction in July for $38.3 million, on behalf of EagleBank, according to Yardi Matrix information. Ranger Properties was the seller.

Since then, the firm has worked with local universities to repurpose the building into student housing. Currently, the property houses about 50 percent local students, with additional units expected to become available to students in the future.

The pipeline for new student housing developments continues to shrink. Only 28,454 new beds are expected to be completed by the start of the 2025 academic year—a significant decline from the 36,306 beds added in 2024 and north of 44,000 in 2023—according to Yardi Matrix.

A residential-to-student housing conversion

Located at 400 Florida Ave. NE, the transit-oriented community is adjacent to the Union Market shopping center and within walking distance of the Gallaudet University campus. Downtown Washington, D.C., is 2 miles away, while Ronald Reagan Washington National Airport is within 6 miles.

The 11-story building came online in 2023 and comprises one-, two- and three-bedroom floorplans ranging between 534 and 946 square feet, as well as first-floor retail space. Select layouts also feature private balconies or patios.

Common-area amenities at the property built according to LEED Silver standards include a fitness center, clubhouse and a rooftop lounge. The community also has a pool table, common lounges and a grilling area.

M&T Realty Capital Corp. Senior Vice President Dan Lynch, Deputy Chief Credit Officer Joanie Wilson and Vice President Connor Quigley led the transaction.