WASHINGTON, Dec. 14, 2020 (GLOBE NEWSWIRE) -- Roadside Development joins EB5 Capital in celebrating the repayment of EB5 Capital’s $12.5 million mezzanine loan invested in Roadside’s City Market at O Street project in the Shaw neighborhood of Washington, DC.
City Market at O Street is a one million square foot, mixed-use development in the heart of the Shaw neighborhood at 7th & O Streets NW. The project features 650 multifamily units, including a 90-unit affordable apartment building for the 55+ community, a 182-room Cambria Suites Hotel, and 90,000 square feet of retail including a grocery store. Originally built in 1881, the historic O Street Market, one of three 19-century public market buildings still standing in the city, is the cornerstone of this project. The market was restored into a state-of-the-art 78,000 square foot Giant Food Store.
The project financing included a complex mix of private and public funding sources. The more than $315 million multi-phased project incorporates private land and cash equity investments and $102 million of EB-5 financing, the first project in DC to receive EB-5 financing. The capital stack also included mezzanine debt, $35 million in tax-increment financing (TIF) bond proceeds from the District of Columbia, and a $128 million HUD-insured Section 220 multifamily mortgage, one of the largest ever for a mixed-use deal. This was a landmark project for the U.S. Department of Housing and Urban Development and was the only mixed-use development designated by the Obama Administration in 2011 as a high-priority project to be fast-tracked for its significant merit and job creation.
EB5 Capital participated in two phases of financing for this project. The first phase was repaid in 2014 and the second phase was successfully repaid this month. All eligible investors have received their permanent Green Cards and their capital back.
“Extraordinary creativity on the part of our financing team enabled us to achieve many milestones including accelerated delivery of senior housing and 15% more affordability,” said Richard Lake, Managing Partner at Roadside Development. “The innovative capital stack also facilitated an inventive approach to the infrastructure design and development that supported critical architectural and urban design objectives for the project and overall neighborhood.”
City Market at O Street ultimately repositioned two key city blocks in the heart of Shaw catalyzing over $1 billion in new investment dramatically improving the linkage of the historic Shaw neighborhood and Downtown. Roadside’s commitment to community led to their funding a skills training initiative; 51% of new construction jobs went to area residents and $192 million of contracts to DC CBE’s, and over 2,400 jobs, including many for DC residents.
“City Market at O Street is a perfect representation of what an EB-5 investment can do to help create needed jobs and increase the viability of underdeveloped neighborhoods,” said Angel Brunner, EB5 Capital’s CEO. “As we move into the new year, we expect EB-5 financing to be a key contributor in the COVID-19 economic recovery, similar to the way it served in the aftermath of the Great Recession of 2008. We look forward to welcoming investors and continuing this work in cities across the U.S.”
| Media Contacts: | ||
| Stephanie Lynch (202) 248-5855 slynch@delucchiplus.com | Ben Carter (202) 652-2437 media@eb5capital.com |
About Roadside Development, LLC
Roadside Development is a Washington DC-based real estate firm that values and invests in people - our employees, partners, business associates, and local communities. The high quality of our projects reflects that value and investment. Whether it is a catalytic urban redevelopment project or a large suburban mixed-use lifestyle center, Roadside Development is committed to providing only professional, innovative, and solution-based real estate services. Roadside Development is known for the successful adaptive reuse of City Market at O, Cityline at Tenley and the former Fannie Mae Headquarters – currently under construction. Learn more at www.roadsidedevelopment.com
About EB5 Capital
EB5 Capital is a leader in the EB-5 immigrant investor industry, raising $800 million in foreign capital from investors in more than 70 countries for investment in job-creating real estate projects across the United States. EB5 Capital owns and operates five USCIS-authorized Regional Centers that serve 14 states and the District of Columbia. With a portfolio of 28 projects, EB5 Capital maintains a 100% project approval rate from the USCIS. For more information, visit http://www.eb5capital.com.