TurnCap recently funded a bridge loan to finance the acquisition and renovation of two neighboring assets in Washington DC. The assets are in a highly desirable location, known as Georgetown, which is near the Potomac River, The Kennedy Center and the Watergate Complex. Both assets were originally developed as multifamily properties but have been operated as extended stay hotels since the early 1990’s. TurnCap’s Borrower is acquiring the properties and renovating the assets to covert the assets back into Class A market rate multifamily buildings.
The Sponsor is a well-respected commercial real estate developer. The Sponsor has a comprehensive understanding of the Washington DC market and a track record of successful adaptive reuse projects.
Transaction Highlights
Experienced Sponsor
The Sponsor has a strong understanding of the Washington DC market and a deep experience with successful adaptive reuse projects.
Experienced General Contractor
The borrower has hired a multifamily general contractor specializing in both renovation and new construction projects in the Greater DC Metropolitan Region. The general contractor has experience converting “underutilized hotels” into Class A multifamily housing.
Experienced Management
The borrower has hired a management firm with over 30 years’ experience in professional property management. The firm’s multifamily residential portfolio consists of over 20,000 apartment units across more than 80 properties, allowing them to leverage their resources to enhance the value of the assets.
Property Location
The properties are in the Georgetown neighborhood, located north of the Potomac River and west of the Rock Creek Parkway. Georgetown is one of the oldest and most desirable neighborhoods in Washington, DC. There are high barriers to market entry, and the Sponsor will benefit from limited competition of comparable multifamily properties within the immediate area.
