Rendering for “mixed-use retail and multifamily apartments” coming to Navy Yard in 2016

25 Potomac Avenue, SE Rendering courtesy MRP Realty

From a press release:

“MRP Residential, a division of MRP Realty (MRP) and Florida Rock Properties, Inc., a full service development company, announced that it has closed on $82 million of construction financing for its Capitol Riverfront mixed-use project on the banks of the Anacostia River.

The construction loan for Phase One of a four phase development, was provided by First Niagara Bank in the amount of $65 million, includes an additional $17 million in preferred equity financing through a joint venture with EB5 Capital. Phillips Capital Realty structured both transactions with MRP and First Niagara Bank.

“This development will not only provide Washington, D.C. with an exciting iconic development but it will also provide the general public, its residents, tenants and patrons a unique and exciting open space and a destination dining environment where people can enjoy the riverfront and where retailers can thrive,” said Frederick Rothmeijer, principal of MRP Realty.

“This site is one of a few sites in the city that is highly accessible to the public with mixed-use open space located directly on the waterfront. We are thrilled to begin construction on the first phase with MRP Realty,” said David deVilliers, president of Florida Rock Properties.

The 305-unit, 281,050 square foot high-rise multifamily project will include 19,000 square feet of ground level retail space, 40,000 SF of public realm open space, rooftop lounge, a public plaza, a boardwalk with bike and pedestrian trails, dramatic river views throughout, media hub and art gallery.

14 Comment

  • Is that a pedestrianized street with cars, a regular street with a dude walking down the middle with a baby stroller, or an attempt to create a woonerf in Washington DC?

  • If I’m not mistaken, this is the parcel of land just south of Nationals Park, between Potomac Avenue and the river.

  • Is this for rentals or buying? There’s a glut of housing in the Navy Yard right now. My friend living in a 2BR in the Navy Yard says that new tenants are signing year long leases for $300 less than what they are currently paying. They’re moving out because it’s so absurd and the management company does not want to lower their rent, but RAISE it by $50. Stupid.

    • It looks like rentals, but they may re-evaluate. The supply of housing in Navy Yard is set to double by 2017. But I also think the area has become so much more desirable since the grocery store / Vida /restaurants have arrived.

      • I hope they re-evaluate. So many apartments are coming to Navy Yard, which I generally think is great, but there really isn’t much permanent housing.

      • Renters are the flavor now. I suspect when the mortgage climate changes (who knows when) many apartments will become “condo-conversion” and the developers will cash out and no longer be apartment managers.

    • DC needs more housing in general, and the Navy Yard area is one of the most conveniently-located parts of DC, so it makes sense to add a lot of housing there.

    • I think that it depends on the housing stock you are comparing. More units may be coming online in the new buildings, but when I look at properties in the area there is a lot of older units.

  • What is a multifamily apartment?

    • A catchall term for an apartment building with more than one unit.

    • Apartments that are shared by more than one family. Consider it modern tenament housing for those who can’t afford single-family housing in the District.

    • Multifamily means “more than five units.”. It typically refers to large apartment blocks owned by investors or developers. Occasionally the term is also used for large condo or co-op developments. But the primary and correct use is for large blocks of apartments b/c it is a type of financing.

      • It’s actually 5 or more units, which makes it a commercial real estate loan and thus is a whole different beast in terms of financing. Usually requires a higher downpayment (it’s typical to see 50-70% LTV at origination), interest only, 10 or 15 year term with a bullet payment. They usually refinance at the end of the 10 year term, so the owner is typically just paying interest the entire time. This is why so many deals went bad in 2007 to 2009 – they couldn’t refinance and were forced to make their (massive) bullet payment.
        1-4 family loans are usually more generous in their terms. But typically the borrower is personally liable for the loan, rather than a faceless CRE company. Banks are also required to hold much less capital against 1-4 family loans.

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