BHI announced that it provided a $47MM bridge loan to refinance the Moxy, a hotel located at 1011 K Street NW in downtown Washington, D.C. The borrower is Douglas Development Corporation (DDC).

Located in one of Washington DC’s fastest growing neighborhoods, Moxy (Moxy Hotel Washington DC Website) is a 200-key, 14-story boutique hotel. The property boasts 69,330 square feet, of which 4,342 square feet is set aside for retail purposes. Moxy’s concept targets the millennial consumer and offers an immersive social experience for guests. The hotel officially opened on November 26, 2018.

Douglas Development Corporation’s original loan was comprised of $35MM held by BHI and a $10.6MM mezzanine piece was held by another investment firm. BHI upsized its position by taking out the mezzanine lender and providing a new $47MM bridge loan. Mimi Vu, Vice President of BHI Commercial Real Estate, who collaborated with the borrower on the refinancing of the loan commented, “This is going to be another success story. This was DDC’s first hotel development and we stood behind this project from the start – we believe in their ability to deliver high quality product given the extensive real estate experience and knowledge that they possess.”

Douglas Development Corporation, established over three decades ago, is the largest private development company in the greater Washington D.C. area. A visionary for investing in underdeveloped areas and revitalizing neighborhoods, the company saw an opportunity with the Moxy in Downtown DC as the area has been undergoing change with the emergence of many companies and businesses. Norman Jemal, Principal of Douglas Development Corporation, stated, “With the support of BHI we were able to enter the hospitality space. BHI’s expertise and assistance in refinancing our existing credit facility is evidence of their trust and confidence in our new business. They are as committed to our success and growth as we are.”

“Our team here at BHI understands the every-changing, dynamic real estate industry, and we’re well-positioned to quickly identify opportunities and create tailored solutions that exceed our clients’ expectations,” said Steven Caligor, Executive Vice President of BHI Commercial Real Estate. “We’ve known Norman and the team at Douglas Development Corporation for years, and this was welcome opportunity to partner with them again to support their impressive growth plans within the hospitality sector.”

About BHI

BHI, the U.S. division of Bank Hapoalim, Israel’s leading financial institution, provides commercial lending solutions to Middle Market clients in the following sectors: commercial real estate; food and beverage; entertainment; apparel; healthcare and high-tech. In addition to its New York headquarters, the bank operates Representative Offices in the United States: Woodcliff Lake, New Jersey; Aventura, Florida; and two locations in California, downtown Los Angeles and Beverly Hills.

For further information about BHI, please visit www.bhiusa.com

About Douglas Development Corporation

For three decades, Douglas Development Corporation has garnered redevelopment successes in the District of Columbia, as well as in suburban Virginia and Maryland. Douglas Development has earned a reputation for revitalizing underdeveloped, emerging areas and continues to win praise from local government authorities, community members, neighbors, and the real estate community at large.

Founder and President Douglas Jemal established Douglas Development in 1985. While the company remains a privately operated and family-owned and controlled company, it has since grown into a fully integrated real estate company with over 100 employees, expanding to New York, New Jersey and Pennsylvania.

With a current portfolio of more than 10 million leasable square feet of office and retail space, a vast portfolio of multi-family buildings, and more than 5 million square feet of developable real estate in the pipeline, Douglas Development is well-established as one of the most dominant and successful real estate developers in the Washington Metropolitan area.