JV Secures $110M for 2 DC Workforce Housing Developments
Merchants Capital provided the funding in two separate deals.
A joint venture between City Interests Development Partners and Ravinia Capital Group has secured $110 million in financing for two mixed-use, workforce housing developments in Washington, D.C. Upon completion, Parkside 8 and Parkside 10 are slated to offer 230 units and approximately 14,000 square feet of commercial retail space.
Merchants Capital, one of the fastest-growing mortgage banking firms of 2022, provided the financing on behalf of the partners as such: Merchants Bank of Indiana provided $56 million of construction loans, while another $59 million were obtained through Freddie Mac LIHTC Forward Commitments and Freddie Mac permanent loans. The Opportunity Zone strategy managed by Bridge Investment Group arranged joint venture equity for the partners.
An important addition to the neighborhood
The two properties, which are included in a larger, 3.1-million-square-foot development known as Parkside, will create workforce housing without the need for federal tax credit subsidies that are usually required for this type of affordable developments. Select units will be reserved for residents earning between 80 and 120 percent of the area median income.
Located at Parkside PI NE within Ward 7, the aggregate Parkside mixed-use development is planned to include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space, as well as 860,000 square feet of office space, a one-acre park and a pedestrian bridge which will cross over Kenilworth Avenue and Interstate 295, linking the neighborhood with the Minnesota Avenue Metrorail Station. The Parkside Opportunity Zone has recently seen significant investment due to the opportunity zone structure.
The Parkside master-planned project will also offer four neighborhood educational institutions and a primary care clinic. These establishments will serve both the properties’ residents, as well as adjacent neighborhoods.