Deal Details
Private Loan Type
Preferred Equity
Approx. Funding Date
06/01/2016
Property Type
Property City
Washington
Property State
DC
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$5,250,000
Property Neighborhood
H Street
Deal Summary
Great Jones Capital, a private lender based in Washington DC, funded a $600,000 1st lien position preferred equity loan for the acquisition of commercial property in the H Street neighborhood of Washington DC. The subject property is an entire city block that 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 townhomes. 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 a 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. This CRE preferred equity loan was funded in June 2016.