Republic Properties Nabs $195M Construction Financing for D.C. Resi Project

Republic Properties has secured a nine-figure financing deal for the latest phase of its Portals mixed use project in Washington, D.C. — more than three decades after cutting the ribbon on the first section.

The D.C.-based development and investment company landed a $195 million construction loan package toward Portals IV, a 356-unit multifamily project not far from the Jefferson Memorial. Investment firm Kennedy Wilson provided $137 million and Pearlmark provided $58 million for the build, arranged by CBRE, with another $65 million provided by sponsor equity. The Business Journals first reported the news. 

Republic’s investment in the project extends back to the 1980s, when the now-defunct District of Columbia Redevelopment Land Agency selected Republic and partner Eastcoast Development to re-envision the District-owned property. The eight-story Portals 1 building, at 1250 Maryland Avenue SW, was delivered in 1992, though it was later purchased for just $26 million by private equity firm Henderson Park in 2023. Henderson received approval last year to convert the struggling office building into 446 residential units.

“[The Portals IV] project speaks to our long-term partnership with the District of Columbia and demonstrates a true working relationship between government and private sector,” Steven Grigg, Republic Properties president and CEO, said in a statement. “We are greatly appreciative of the District’s support in working with us to achieve the completion of the last phase of the Portals, which has transformed this area of Southwest D.C. into a vibrant and growing community with housing and mixed-use development.” 

Plans for the 535,000-square-foot project, dubbed 1301 after its address at 1301 Maryland Avenue SW, include 356 market-rate units and amenities such as an outdoor pool and coworking spaces. WDG Architecture and Akseizer Design Group are designing the project, which is scheduled to begin construction this year and is expected to cost more than $260 million. 

Once completed in 2027, the building will join its sister at the Portals complex, a 550,000-square-foot, 373-unit multifamily building at 1331 Maryland Avenue SW previously known as Portals V. That project delivered in 2020. 

Henderson Park, meanwhile, clearly smelled blood in the water in the wake of post-pandemic office vacancy woes in the District. About a year before its purchase of Portals 1 in 2023, Henderson also paid $139 million to Mandarin Oriental for 1330 Maryland Ave SW, a 373-key hotel now branded as Salamander Washington, D.C. Republic developed the property, as part of the Portals complex, for Mandarin in 2004.

Nick Trombola can be reached at ntrombola@commercialobserver.com.