WASHINGTON, DC–JBG Cos. secured $74 million in construction finance from a commercial bank for the development of 1221 Van St., a 13-story luxury apartment building in the Capitol Riverfront. Cushman & Wakefield Executive Managing Director John Campanella arranged financing for the project.
1221 Van St. will be a 13-story apartment building with 291 units and approximately 24,000 square feet of ground-floor retail. The site is bordered by Van, N and South Capitol streets, adjacent to Nationals Park and a few blocks from the future DC United stadium.
It is scheduled to be delivered in Spring 2018.
A core truth of the real estate capital markets is that good sponsors attract good, and usually multiple, lenders — especially in the latter part of a cycle. “What we are seeing is that many lenders are sliding their chips on the best sponsors and they are not as concerned about spread as they are about serving the best clients in the market,” Campanella tells GlobeSt.com.
JBG Cos., though, can count on good financing no matter what, given its presence in the market, Campanella says. “They are are able to drive more competitive loan terms and structures than you would typically see in the market. They are a tier 1 sponsor and they receive preferential treatment from many of the lenders as a result.”
In short, the terms for this loan were very competitive, Campanella said, declining to discuss them further.
WASHINGTON, DC–JBG Cos. secured $74 million in construction finance from a commercial bank for the development of 1221 Van St., a 13-story luxury apartment building in the Capitol Riverfront. Cushman & Wakefield Executive Managing Director John Campanella arranged financing for the project.
1221 Van St. will be a 13-story apartment building with 291 units and approximately 24,000 square feet of ground-floor retail. The site is bordered by Van, N and South Capitol streets, adjacent to Nationals Park and a few blocks from the future DC United stadium.
It is scheduled to be delivered in Spring 2018.
A core truth of the real estate capital markets is that good sponsors attract good, and usually multiple, lenders — especially in the latter part of a cycle. “What we are seeing is that many lenders are sliding their chips on the best sponsors and they are not as concerned about spread as they are about serving the best clients in the market,” Campanella tells GlobeSt.com.
JBG Cos., though, can count on good financing no matter what, given its presence in the market, Campanella says. “They are are able to drive more competitive loan terms and structures than you would typically see in the market. They are a tier 1 sponsor and they receive preferential treatment from many of the lenders as a result.”
In short, the terms for this loan were very competitive, Campanella said, declining to discuss them further.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
