Washington, DC

$600,000

Commercial Land, Residential Land

Preferred Equity

06/01/2016
Transaction by
Great Jones Capital
$600,000 of preferred equity for the acquisition of a commercial property in the H Street neighborhood of Washington DC. The subject property is an entire city block which was previously owned by a church and has been used for accommodations for church social functions and office space. The Sponsor is an experienced real estate developer who plans to redevelop the property, converting half of the block into condos and the other half into town homes. The purchase price was $5,250,000. A conventional commercial real estate lender provided the 1st position mortgage. The Sponsor put $175,000 cash in the deal, and we funded the remainder. Our preferred equity enabled the Sponsor to acquire an under-managed, but well-located residential asset in a prime area of D.C. The property is just a few blocks from H Street NE, which is a burgeoning neighborhood with hot new restaurants and the new streetcar. We will not be participating in the development or construction of the project. The Sponsor plans to use proceeds from the sale of another property to pay off our preferred equity in about 1 year.