“Commercial real estate is going to trail residential because residential leases are shorter. What you have seen is residential numbers plummet in Silicon Valley and San Francisco. You’re hearing about multifamily down 40% in rents. Commercial is going to follow that because commercial leases tends to be five years or more and landlords have the ability to hold the line.”
Washington, DC – Roadside Development joins EB5 Capital in celebrating the repayment of EB5 Capital’s $12.5 million mezzanine loan invested in Roadside’s City Market at O Street project in the Shaw neighborhood of Washington, DC.
City Market at O Street is a one million square foot, mixed-use development in the heart of the Shaw neighborhood at 7th & O Streets NW. The project features 650 multifamily units, including a 90-unit affordable apartment building for the 55+ community, a 182-room Cambria Suites Hotel, and 90,000 square feet of retail including a grocery store. Originally built in 1881, the historic O Street Market, one of three 19-century public market buildings still standing in the city, is the cornerstone of this project. The market was restored into a state-of-the-art 78,000 square foot Giant Food Store.
The project financing included a complex mix of private and public funding sources. The more than $315 million multi-phased project incorporates private land and cash equity investments and $102 million of EB-5 financing, the first project in DC to receive EB-5 financing. The capital stack also included mezzanine debt, $35 million in tax-increment financing (TIF) bond proceeds from the District of Columbia, and a $128 million HUD-insured Section 220 multifamily mortgage, one of the largest ever for a mixed-use deal. This was a landmark project for the U.S. Department of Housing and Urban Development and was the only mixed-use development designated by the Obama Administration in 2011 as a high-priority project to be fast-tracked for its significant merit and job creation.
EB5 Capital participated in two phases of financing for this project. The first phase was repaid in 2014 and the second phase was successfully repaid this month. All eligible investors have received their permanent Green Cards and their capital back.
“Extraordinary creativity on the part of our financing team enabled us to achieve many milestones including accelerated delivery of senior housing and 15% more affordability,” said Richard Lake, Managing Partner at Roadside Development. “The innovative capital stack also facilitated an inventive approach to the infrastructure design and development that supported critical architectural and urban design objectives for the project and overall neighborhood.”
City Market at O Street ultimately repositioned two key city blocks in the heart of Shaw catalyzing over $1 billion in new investment dramatically improving the linkage of the historic Shaw neighborhood and Downtown. Roadside’s commitment to community-led to their funding a skills training initiative; 51% of new construction jobs went to area residents and $192 million of contracts to DC CBE’s, and over 2,400 jobs, including many for DC residents. “City Market at O Street is a perfect representation of what an EB-5 investment can do to help create needed jobs and increase the viability of underdeveloped neighborhoods,” said Angel Brunner, EB5 Capital’s CEO. “As we move into the new year, we expect EB-5 financing to be a key contributor in the COVID-19 economic recovery, similar to the way it served in the aftermath of the Great Recession of 2008. We look forward to welcoming investors and continuing this work in cities across the U.S.”
About Roadside Development, LLC
Roadside Development is a Washington DC-based real estate firm that values and invests in people – our employees, partners, business associates, and local communities. The high quality of our projects reflects that value and investment. Whether it is a catalytic urban redevelopment project or a large suburban mixed-use lifestyle center, Roadside Development is committed to providing only professional, innovative, and solution-based real estate services. Roadside Development is known for the successful adaptive reuse of City Market at O, Cityline at Tenley and the former Fannie Mae Headquarters – currently under construction. Learn more at www.roadsidedevelopment.com
About EB5 Capital
EB5 Capital is a leader in the EB-5 immigrant investor industry, raising $800 million in foreign capital from investors in more than 70 countries for investment in job-creating real estate projects across the United States. EB5 Capital owns and operates five USCIS-authorized Regional Centers that serve 14 states and the District of Columbia. With a portfolio of 28 projects, EB5 Capital maintains a 100% project approval rate from the USCIS. For more information, visit http://www.eb5capital.com.
Washington, DC – EB5 Capital joins Huntington Hotel Group (HHG) in celebrating the grand opening of the LA-Agoura Hills Marriott Hotels in Agoura Hills, CA. The property is a 225-room, dual-branded Marriott hotel complex, approximately 30 miles from the City of Los Angeles. The development features a 129-room Courtyard by Marriott and a 96-room TownePlace Suites by Marriott, with separate indoor lounges for each hotel brand, a courtyard bistro, and approximately 7,000 square feet of meeting space.
“Many of our investors are fond of the Golden State and we are delighted about the opening of another Marriott hotel project with HHG in California,’’ said Brian Ostar, EB5 Capital’s President. “We have experienced continuous success in our five partnerships with HHG and the opening of LA-Agoura Hills Marriott Hotels is a rewarding milestone for us and our investors.’’
EB5 Capital funded $20.5 million in the project as a preferred equity investment, creating over 550 EB-5 qualifying jobs for its 41 investors. The hotel includes an outdoor swimming pool with patio, fire pits, and barbecue areas. The project is located off the 101 Freeway just minutes from Calabasas and Conejo Valley corporate offices, and the beaches and vineyards of Malibu. It is the ideal hub for business trips or family vacations.
‘’We are excited to see this project become a driving force in drawing visitors to Agoura Hills as the state reopens,’’ said Jon Mullen, Senior Vice President of Investments. “We are looking forward to welcoming our investors for site tours whenever they are in the area.”
About EB5 Capital
EB5 Capital is a leader in the EB-5 immigrant investor industry, raising over $750 million in foreign capital from investors in more than 65 countries for investment in job-creating real estate projects across the United States. EB5 Capital owns and operates five USCIS-authorized Regional Centers that serve 14 states and the District of Columbia. With a portfolio of 28 projects, EB5 Capital maintains a 100% project approval rate from the USCIS. For more information, visit http://www.eb5capital.com.
Washington, DC – EB5 Capital joins Virgin Hotels and The Buccini/Pollin Group in celebrating the grand opening of the Nashville Virgin Hotel located in Nashville, Tennessee. The property is a 14-story, 260-room Virgin hotel located on the city’s famed Music Row and walking distance from Vanderbilt University. Virgin Nashville is the 3rd Virgin Hotel to open in the United States, joining Chicago and Dallas as metro areas hosting Virgin’s 21st Century brand of hospitality.
“We’re thrilled about seeing this exciting hotel project open in Nashville,” said Brian Ostar, EB5 Capital’s President. “Virgin has utilized their extensive track record of exceptional customer service to ensure that guests feel safe and comfortable throughout their stay.”
EB5 Capital funded $44 million into the hotel project as a preferred equity investment. The hotel includes 18,000 square feet of event space, a uniquely-themed lounge, a rooftop bar, and a pool, as well as panoramic views of Nashville’s surrounding cityscape. The property was designed to meet demand for the Millennial-age traveler, interested in an updated hospitality experience.
“A project opening is an important milestone in the lifecycle of an EB-5 investment,” said Patrick Rainey, EB5 Capital’s Vice President of Investments. “Our project partners have done an amazing job navigating through the current conditions and we’re looking forward to the Nashville Virgin Hotel becoming a preferred-choice hotel experience in Nashville.”
About EB5 Capital
EB5 Capital is a leader in the EB-5 immigrant investor industry, raising over $750 million in foreign capital from investors in more than 65 countries for investment in job-creating real estate projects across the United States. EB5 Capital owns and operates five USCIS-authorized Regional Centers that serve 14 states and the District of Columbia. With a portfolio of 27 projects, EB5 Capital maintains a 100% project approval rate from the USCIS. For more information, visit http://www.eb5capital.com.
Construction is approaching the pinnacle of the NoMad Ritz Carlton Hotel at 1185 Broadway. Located at the northern intersection of West 28th Street and Broadway, the superstructure will culminate 580 feet above Midtown, yielding 150,000 square feet and 250 guest rooms.