Real Estate Journal — Multifamily Financing — Financial Digest — August 12 - 25, 2016 — 13A


M id A tlantic

M ultifamily F inancing

ASHINGTON, DC — Eastern Union Funding (Eastern The Jocelyn Group will develop abandoned site into modern apartments Eastern Union Funding arranges $4.3m in financing for new multifamily development W

Union) has arranged nearly $4.3 million in financing for The Jocelyn Group to ac- quire 1515 Rhode Island Ave., NE, where it will develop The Violet, a modern, 20-unit luxury rental apartment build- ing with underground parking. Minutes from downtown and well-served by metro and bus lines, The Violet’s two-bedroom and two-bathroom apartments will feature high-end finishes, including hardwood floors, granite counter tops and stain- less steel appliances. Rents for the 1,100 s/f units will start at $2,400 per month. Most resi- dents will have private outdoor space and all will have access to the rooftop deck resplendent with native plantings. According to Eastern Union senior loan consultant David Merkin , the 10-year loan for the shovel-ready site reflects 80% of the acquisition cost and includes construction financ- ing. Amortized over 30 years, the debt, which was secured through Presidential Bank , comes with a five-year fixed rate and 18 months of interest- only payments. “Given the strength of own- ership, the project and strong absorption in the market for multifamily buildings, we were able to lock in terrific terms when lenders typically give a floating rate and reset the loan into a permanent one at the point of stabilization,” said Merkin, who arranged the financing with Eastern Union senior managing direc- tor Marc Tropp . “Our client has peace of mind locking in the long-term debt, rather than worrying about likely rate increases in the next few years,” he added. With building permits and completed architectural draw- ings in hand at the time of the sale, The Jocelyn Group ex- pects to complete construction in the spring of 2017. Frank Chambers , a prin- cipal with The Jocelyn Group said, “We are extremely pleased with Eastern Union’s work on the financing package and are eager to get started on The Violet. Demolition of the pre- existing structure is largely complete on this and another Jocelyn Group project, 3rd Street Flats, which is located at 1940 3rd St., NE, also an abandoned building.” n

1515 Rhode Island Ave., NE (before)

1515 Rhode Island Ave., NE rendering (after)

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