BOSTON, MA - CWCapital, a subsidiary of CW Financial Services and a full-service, national lender to the multifamily and healthcare real estate industries, today announced that it has provided $151 million in financing for the construction of 1st & M, a 469-unit, class-A property located in Washington, D.C. The loan includes a 30-month construction period and 40-year fully-amortizing permanent financing. It was structured and originated by Andrea (Dee) McClure, Senior Vice President and Mid-Atlantic Regional Manager for CW, and was financed through the firm's FHA platform.
The 1st & M project is a highly anticipated residential complex offering groundbreaking amenities and resident services. It is scheduled for completion in 2013 and is located in Washington, D.C.'s "NoMa" (North of Massachusetts Avenue) district, just north of Union Station and the U.S. Capitol. Among the many property features are a resident library, sound-proof activity studios, 16,000 square foot courtyard with trees and reflective pools, and a rooftop which boasts a heated pool, spa, and impressive views of the Capitol building and downtown D.C.
Englewood, Colorado based Archstone, one of the largest and most highly respected multifamily owners and managers in the U.S., is the property's developer. Archstone will further market and manage the property upon completion. This is the first time Archstone has executed financing through the FHA. With the current economic crisis continuing to limit financing alternatives for developers, demand for the often complex FHA construction loan program has increased.
"The 1st and M project is unique in a number of ways," stated McClure. "It is one of the largest HUD-insured multifamily construction loans ever closed. The scope and attributes were significant and required the ability to match Archstone's objectives with FHA program criteria. Working to understand both perspectives, we were able to structure a transaction which successfully addressed many atypical issues. We look forward to Archstone introducing the property into the market upon completion in 2013."
Michael Berman, President and CEO of CWCapital, added, "With strong multifamily demand in select markets, such as Washington D.C., FHA is providing critical new construction capital to borrowers - and helping to create jobs. While many banks are on the sidelines or have restricted credit criteria, FHA is performing an important counter-cyclical role and attracting high quality sponsors with high quality projects who have rarely, if ever, accessed this capital. The 1st and M loan is a perfect example of this. Our expertise in this area has brought us a significant amount of new business. We have been pleased to see a substantial increase in FHA construction lending and believe it will continue into 2011."
A leading Fannie Mae, Freddie Mac and FHA lender offering origination, underwriting and servicing through its network of national lending offices, CWCapital currently services a portfolio of $11.6 billion in loans in 48 states.
CW Financial Services is a unique, vertically integrated commercial real estate debt platform comprised of CWCapital LLC, CWCapital Investments LLC and CWCapital Asset Management LLC. Offering a full range of products and services including multifamily lending, servicing, special servicing, consulting and investment management, CW Financial Services employs approximately 350 professionals in 14 offices nationwide.
Source: CW Financial Services