The Jocelyn Group will develop an abandoned Rhode Island Avenue site into modern apartments with outdoor space, a rooftop deck and underground parking
Eastern Union Funding has arranged nearly $4.3 million in financing for The Jocelyn Group to acquire 1515 Rhode Island Avenue, NE, where it will develop The Violet, a modern, 20-unit luxury rental apartment building 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 stainless steel appliances. Rents for the 1,100-square-foot units will start at $2,400 per month. Most residents will have private outdoor space and all will have access to the rooftop deck resplendent with native plantings.
According to Eastern Union Funding senior loan consultant David Merkin, the 10-year loan for the shovel-ready site reflects 80 percent of the acquisition cost and includes construction financing. 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 ownership, 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," stated Merkin, who arranged the financing with Eastern Union senior managing director 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 drawings in hand at the time of the sale, The Jocelyn Group expects to complete construction in the spring of 2017.
Frank Chambers, a principal with The Jocelyn Group and D.C. native, noted, "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, 3rdStreet Flats, which is located at 1940 3rd Street, NE, also an abandoned building. As native Washingtonians, we are very excited to bring life to these once languishing properties.”
About Eastern Union Funding
Founded in 2001, Eastern Union Funding is a top 10 commercial mortgage brokerage according to Mortgage Bankers Association’s annual survey, and one of the top 50 fastest growing companies in NYC as reported by Crain's New York Business the past two years straight. A trusted advisor to its clients and innovation leader in the commercial mortgage marketplace, Eastern Union closes an average of $3 billion in annual transaction volume nationwide. The firm’s sophisticated debt solutions are complemented by a one-of-a-kind Equity Division. Eastern Union is headquartered in New York, with offices in New Jersey, Maryland and Israel. For more on the country’s most trusted commercial mortgage brokerage, visit www.easternuc.com.
