Aggressive $87M Secures MXD Project

WASHINGTON, DC-Cushman & Wakefield has closed on $87 million in financing for a multifamily/retail mixed-use project under development in the District. Andrew McAllister and Michael Ryan of Cushman & Wakefield’s Capital Markets Group negotiated the transaction.

In general, just being able to close a loan these days–even at the more stringent terms required now by most financiers–can be reason for a pat on the back. This particular transaction, though, stands out to McAllister as it is one of the most aggressive in structure and price that he has seen since the beginning of the credit crunch. A three-tiered structure, “the tranches were placed at pricing that would be difficult to match in today’s environment,” he tells GlobeSt.com. The first tranche went to 75% of cost; the second to 85%, he says. Both of these were floating rate loans. The third tranche was a fixed rate, at 95% of cost. Total development costs for the project are north of $90 million, he says. McAllister attributes the package to a “great sponsor and great project”.