CGA Capital, a Maryland-based lender, provided a $24.6 million mortgage to Friedman Capital and an unnamed partner for their purchase of a 32,246-square-foot property in the East End submarket of Washington, D.C., sources have told Commercial Observer.
The building, which is located at 810 5th Street NW, is leased to the District of Columbia’s Department of Human Services. The facility, which was recently renovated, will serve as a 100-plus-bed women’s homeless shelter. There are also administrative offices on site.
Mission Capital’s Jordan Ray, Steven Buchwald and Eugene Shevaldin arranged the debt for the borrower.
“We knew this was a transaction that some capital providers might shy away from based on its specialty use,” Mr. Ray, a principal of the brokerage, said in prepared remarks. “Ultimately, CGA Capital was able to get comfortable with the lease signed by the district and provide our clients with a 20-year high-leverage credit tenant loan.”
An email inquiry to Friedman Capital was not returned. A representative for CGA declined to comment.