Douglas Development Corporation (DDC) raised $53.5 million to capitalize the development of 1000 F Street, NW, in Washington, D.C. NGKF Capital Markets arranged a $44.5 million construction loan and EB5 Capital arranged $9.0 million of preferred equity through the U.S. Immigrant Investor Program, also known as the EB-5 program.
NGKF worked exclusively on behalf of DDC to secure the three-year construction loan with two one-year extension options through United Bank at a rate of 4% and a loan-to-cost ratio of 53%. Combined with the EB-5 preferred equity, the $53.5 million represents approximately 65% of the total costs.
Located at the landmark corner of 10th and F Street NW, 1000 F Street is an 11-story, LEED certified, state-of-the-art building designed by the highly acclaimed architectural firm Shalom Baranes Associates. It combines 85,442 square feet of modern office functionality with 7,204 square feet of retail (pre-leased to American Eagle Outfitters), with historically preserved storefronts at street level as well as two levels of below-grade parking. Additionally, the design of 1000 F Street is unique for tenants as the massing of the office towers transitions from an L-shaped floor plate wrapping the historic building to a rectangular bar in deference to adjacent historical properties along 10th Street, resulting in setbacks that provide outdoor terraces at the sixth, eighth and tenth floors. The opportunity for a 7,000- to 10,000-square-foot tenant to have an entire floor, as well as an outdoor terrace, is a rare opportunity in the marketplace.
“Given the current leasing headwinds, speculative office development financing is rare. The combination of DDC’s track record of successful development, incorporating historic aspects of existing buildings, the unique design and the pre-leasing of the retail, were critical in the success of procuring the financing,” said Joe Donato, a vice chairman of NGKF Capital Markets.
The Washington, D.C.-based team of Mr. Donato, Maury Zanoff, Matthew Williams and Jamie Leachman represented DDC.
About Douglas Development Corporation
Douglas Development Corporation, founded in 1985 and based in Washington, DC, has been recognized as a leading force in the District’s redevelopment. DDC has successfully redeveloped more than 180 projects in the District of Columbia, Maryland, and Virginia. Additionally, DDC has more than 8.5 million square feet under management, primarily in Washington, DC, and more than 4 million square feet of developable property in its pipeline. For more information regarding Douglas Development Corporation, please refer to its website www.douglasdev.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.