J.P. Morgan Lends $105M on Future DC Dept. of General Services HQ
J.P. Morgan has provided a $105 million loan to fund the construction of the future headquarters of the Department of General Services (DGS) in Washington, D.C.’s Ward 7.
A joint venture between Cedar Realty Trust, Asland Capital Partners and the Goldman Sachs (GS) Urban Investment Group is developing the property, named Northeast Heights, which will contain 258,500 square feet of office and retail. DGS, a government agency with more than 700 skilled employees, will lease the entire office component of the building.
The property, at 322 40th Street NE, is located in an opportunity zone in Ward 7’s Minnesota/Benning submarket.
“We believe that the impetus behind the opportunity zone program was precisely the development of projects such as Northeast Heights, aimed at creating vital investment opportunities on mixed-income, underserved neighborhoods,” James H. Simmons III, Asland Capital Partners’ CEO and founding partner, said in a statement. “We are looking forward to continue working on this remarkable project and being part of the future of Ward 7.”
The six-story building will also include 18,000 square feet of street-level retail.
“As the cornerstone and catalyst to the Northeast Heights redevelopment, construction of the DGS headquarters building will begin the long-planned revitalization of the Minnesota/Benning Corridor,” Robin Zeigler, Cedar Realty Trust’s COO, said in prepared remarks.
Trammell Crow Company is serving as the designated fee developer, while the JLL Capital Markets team of Roland Merchant Jr., Nicco Lupo and Thomas Pryor arranged the debt and equity financing.
“We’re excited about metropolitan Washington, D.C., as evidenced by our new investment in Northeast Heights and our existing project, Heritage at Old Town in Alexandria,” Simmons told Commercial Observer. “Clearly, there are opportunities that play to our strengths, and we look forward to continuing our participation in the greater D.C. market.”