Capitol Real Estate Development Secures $5M Loan for Housing Development in Congress Heights
- Apr 23, 2014
After years of bad luck, a residential project looking to bring condominiums and townhouses to Washington, D.C.’s Congress Heights area is finally getting ready to take off. LYNK Capital LLC has recently closed a $5 million loan for Woodcrest Holdings LLC, a subsidiary of Capitol Real Estate Development, LLC, the project’s developer. The loan will be used to finance the construction of Phase I.
The project initially started in 2005. Like many other developments, it was hit hard by the financial crisis and failed a few years later. However, it had the good fortune to be located in Congress Heights. The area has recently been experiencing a development boom, thanks to the work the D.C. government is doing to transform the nearby St. Elizabeth’s Campus into an innovation hub, a future home for Microsoft and other companies.
Capitol Real Estate Development purchased the project and will now bring it back to life. It consists of 70 condominiums and 24 townhouses.
“We are pleased to hear of this amazing investment in the Congress Heights neighborhood,” Victor Hoskins, D.C.’s Deputy Mayor for Planning and Economic Development, said in a statement for the press. “This residential project will complement the city’s plans for transforming the area into a vibrant and innovative community.”
As part of Phase I, Capitol Real Estate Development will complete the 26 existing homes with upgraded kitchens and flooring. This part of the project is expected to be completed later this year. Phase II calls for the construction of the remaining 68 homes. Depending on size and amenities, the units are expected to sell at prices between $240,000 and $360,000.
“We are very excited to provide a high-quality housing option to attract young professionals to the area, who want to live near their work. Since retail follows housing, it seems likely that retailers will begin to take another look at Congress Heights, too,” said Mike Hughes, vice president of Capitol Real Estate Development.
“The Renaissance that’s happening in Congress Heights is predicted to have a very positive impact on the community. Housing and retail are key to that growth. We hope that by funding this loan, we will have contributed to that effort,” added Ben Lyons, managing director of LYNK Capital.