Developers of the Waterfront Station II in Washington DC have received US$141.3 million in financing for the mixed-use development located at 1000 4th Street SW. The 12-story apartment building will have 449 apartments, 136 of which will be classified as affordable housing, 68 of which will be offered to households earning 30% of the area median income and an additional 68 allocated to households earning 50% of the area median income. On the ground floor, there will be almost 29,000 square feet of retail, educational, and commercial space, as well as below-grade parking. AppleTree Public Charter School and Good Company Doughnuts anchor the commercial space. A total of 7,000 square feet of retail space is now available for lease.
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The project is expected to be completed by the winter of next year. There will also be 19,000 square feet of outdoor and indoor facilities spread across four stories of the structure. A coworking and social gathering area, a fitness center, and a hospitality lounge with specialized meeting space are all part of the package. Other advantages of the project include its proximity to the Waterfront Station green line Metro station and The Wharf, as well as its location in the heart of a very desirable neighborhood in the District’s Southwest Quadrant.
More on the funding for Waterfront Station II
Merchants Bank of Indiana supplied the finance, which included a $123.5 million construction loan as well as two low-income housing tax credits (LIHTC). Merchants Capital provided funding to the developers, a partnership of AHC, Hoffman & Associates, CityPartners, and Paramount Development. “Each component has its own ownership structure, legal requirements, investment needs, and underwriting criteria.” As a result, the borrowers, bond issuers, bond underwriters, investors, Fannie Mae, and Merchants as lenders had to discuss and agree on the needs of each component, not just in relation to each component but to the development as a whole.” According to Marsha Goff, executive vice president of Merchants Capital’s Saint Paul branch.
