Bozzuto Begins a Mixed-Use Project in D.C.

The Bozzuto Group breaks ground in D.C.; The Bascom Group completes its fourth Denver acquisition in 2012; and Pearlmark Real Estate closes a $7.9M mezzanine loan for new construction in Atlanta.

Cathedral Commons

Washington, D.C.—The Bozzuto Group has broken ground on its latest development, Cathedral Commons, a mixed-use asset that will include 137 apartments, eight town homes, 128,000 square feet of retail and more than 500 parking spaces. The development is centered around a state-of-the-art Giant Food.

“Through Cathedral Commons, we will create in Northwest Washington, D.C. a mixed-use community where residents can enjoy a wealth of conveniences just outside their front door,” says Tom Bozzuto, chief executive officer of The Bozzuto Group. “We are honored to have the opportunity to help bring to fruition a new vision of urban community planning and development to the District of Columbia.”

The $130 million project is a joint venture between Bozzuto Development Company, Southside Investment Partners and Giant Food of Landover, Md. Though Giant Food has had a store location at the site for the last 50 years, the new store will feature floral, bakery, meat, seafood and deli departments. The remainder of the prime street-front retail space is being leased by H&R Retail.

The residences are on schedule to deliver in fall 2014. Amenities will include a hotel-style lobby, lounge areas, a library, fitness center, clubroom with bar, resident courtyards, and a rooftop deck with views of the National Cathedral.

Bascom closes fourth Denver acquisition in 2012

Park Place at 92nd

Westminster, Co.—The Bascom Group has acquired Park Place at 92nd, a 228-unit community located in Westminster, Co. The acquisition price was $16.6 million. Built in 1974, the property has a unit mix of 37 percent one-bedroom, 47 percent two-bedroom and 16 percent three-bedroom units.

“This represents our fourth acquisition in Denver this year,” says Paul Miszkowicz, senior analyst for Bascom. “We are excited about the growth of our presence in the Denver market given the high occupancies and potential for market rent growth.”

The deal also represented the company’s 12th acquisition nationally in 2012. Holliday Fenoglio Fowler arranged financing for the purchase, and onsite property management will be overseen by Apartment Management Consultants.

Pearlmark Real Estate closes $7.9M mezzanine loan for new construction in Atlanta

Atlanta—Pearlmark Real Estate Partners LLC announces the closing of a $7.9 million construction mezzanine loan for BOHO, a multifamily development in Atlanta. The to-be-built, 276-unit midrise apartment community will be in close proximity to both Midtown and Downtown, providing future residents access to multiple employment centers. The site’s infill location and proximity to retail and entertainment centers create a dynamic urban living environment. Common area facilities will include an outdoor swimming pool, sun deck, grilling pit, courtyards, cyber cafe, clubroom and fitness center. The interiors of the units will be built with luxury finishes.

This investment was made on behalf of Pearlmark Mezzanine Realty Partners III LLC, a fully discretionary investment fund with $427 million in capital commitments. The borrower, North American Properties, is a strong and experienced sponsor. Senior financing was provided by PNC Bank.

Mark Witt of Pearlmark Real Estate Partners arranged the transaction. “We are excited to close a loan with North American Properties, a premier national developer since its inception in 1954,” Witt says. “Additionally, the subject’s location, adjacent to the Historic Fourth Ward Park, made the mezzanine loan a very attractive investment opportunity for our fund.”

“This investment follows our mandate of investing in well-located assets with strong developers and proven track records,” adds Douglas W. Lyons, managing director of Pearlmark Real Estate Partners.