By Joshua Ayers, Senior Editor
Washington, D.C.—Working on behalf of Madison Investments, MAC Realty Advisors LLC has arranged a $27.4 million investment and senior construction loan to acquire and develop a site located at 1921 14th Street NW in Washington, D.C. The site currently contains a parking lot, retail and a vacant apartment building, and construction is expected to begin in June. Units are anticipated to be delivered in early 2016.
“This is the 100 percent location in Washington, D.C.,” says Andrew McAllister, executive director with MAC. “There were countless passive and active investors interested in moving forward.”
In addition to the arrangement, MAC also placed a limited recourse senior construction facility from a regional bank for the transaction. The placement for the transaction, which closed on March 10, 2014, was led by MAC’s McAllister, Ben Lazarus and Caren Garfield.
“MAC worked with the senior lender to help them underwrite the substantial in-place land basis, which resulted in a construction loan that required a limited amount of cash equity and best-in-class terms,” says Lazarus, a senior director with MAC.
According to Madison, the project, dubbed Elysium Fourteen, will target LEED certification and the project’s total square footage will comprise 66,000 square feet.
Madison plans on rehabilitating the existing historic buildings and adding a new nine-story high rise on the site’s current parking lot. When complete, the project will include 56 residential units and about 13,000 square feet of ground-floor retail space.
The community’s location in the heart of the 14th Street Corridor boasts a Walk Score of 94 because of its proximity to an assortment of parks, dining, entertainment, employment and the U Street Metro Station. The neighborhood is expected to see the opening of a new Trader Joe’s store this year.
“Limited availability of mixed-use development sites on 14th Street make this transaction especially compelling,” says Sia Madani, a principal of Madison Investments. “Madison is incredibly excited to break ground on 14th Street!”