TODAY’S DEALS: From Italian Embassy to Apartments

Mill Creek enters a historic redevelopment play in D.C., and KeyBank finances a Maryland affordable housing property.

Italian EmbassyWashington, D.C.—The long-awaited redevelopment of D.C.’s former Italian Embassy is moving forward. Dallas-based Mill Creek Residential picked up the project for a purported $16.2 million from a Potomac Construction joint venture. Located at 2700 16th Street NW, the 1925-built Neo-Renaissance building served as the diplomatic mission of the Italian Republic to the U.S. until 2002. The historic asset was designed by Whitney Warren and Charles D. Wetmore, the same duo who designed Grand Central Terminal in New York.

The Italian Embassy is situated in close proximity to Adams Morgan and the U Street Corridor, the latter of which is Washington D.C.’s fastest-growing submarket, featuring a Metro area-leading 7.4 percent rent growth in 2014, according to Delta Associates.

Il-Palazzo-_Trout Desing Studio

The approved redevelopment design by Trout Design Studio.

According to the Washington Business Journal, the property was sold by a joint venture between Potomac Construction Group, Valor Development and The Garrett Cos. The joint venture had approvals for designs, though it is not clear yet if Mill Creek will retain Trout Design Studios for the redevelopment. But the new owner will satisfy the guidelines set by the Historic Preservation Review Board.

The existing building will be renovated and a nine-story high-rise with two levels of below grade parking will rise on the site. Amenities will honor the building’s original use with a European aesthetic, and will include a clubhouse, business center, rooftop terrace, fitness center and landscaped outdoor terraces. Units will range from studios up to three-bedroom apartments.

KeyBank finances Maryland affordable housing property

Fort Washington, Md.—KeyBank Real Estate Capital has provided $18.5 million in Freddie Mac financing for Henson Creek Manor, an affordable housing community located in Fort Washington, Md.

The 210-unit, garden-style apartment community was constructed in 1994 and 1998. Caleb Marten of Key’s Commercial Mortgage Group arranged the financing, which was used to purchase the property.

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