EagleBank Provides $86M Construction Financing for Bethesda Mixed-Use Development

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A joint venture between Duball, Daiwa House Group and the The Lenkin Company has received $85.6 million in construction financing to start building St. Elmo Apartments, a 22-story mixed-use building in the Woodmont Triangle area of Bethesda, Md.

Bethesda-based EagleBank provided the financing, as The Washington Business Journal first reported. The firm did not disclose the terms. 

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“This was an opportunity to address housing supply issues with another transit-oriented development within EagleBank’s hometown Bethesda market on a project with institutional quality sponsorship,” Ryan Riel, EagleBank’s executive vice president and chief real estate lending officer, told Commercial Observer. “This project will deliver new, high-quality apartment homes and street-level retail; another step in transitioning the Woodmont Triangle of old into the amenity-rich and pedestrian-friendly Woodmont Triangle of the future.”  

The planned development will be comprised of 276 residential units, 5,000 square feet of retail and more than 215 parking spaces.

“We have had a long, successful track record in Bethesda as this is our fourth project — the others being Lionsgate, Cheval and Stonehall,” Marc Dubick, president of Duball, said. “The Lenkin Company had their corporate headquarters on the site for many decades and in addition to being the seller, we are thrilled that they decided to participate with us in the redevelopment.” 

The property is located between St. Elmo and Fairmont avenues, and is a short walk to the Bethesda Metro Station. The project also includes an updated promenade connecting the two avenues. 

Requests for comment from the other developers were not immediately returned.

Keith Loria can be reached at Kloria@commercialobserver.com.