JLL Capital Markets announced today that it has arranged $37.308 million construction financing for the development of Kite House at The Parks at Walter Reed, a 109-unit condominium development with 11,000 rentable square feet of ground-floor retail in Washington, D.C.
JLL worked on behalf of the borrower, a joint venture between Hines, Urban Atlantic, and Triden Development Group, to secure the three-year, floating-rate loan through Bank OZK. Grosvenor Americas provided a mezzanine debt commitment of $21.1 million for Kite House through its Structured Development Finance program.
With first unit deliveries expected in early 2023, sales are planned to begin in February 2022. Kite House will offer one-, two- and three-bedroom units averaging 830 square feet. The community town center, known as the Marketplace, will offer shops, restaurants and retail amenities, including a Whole Foods Market. The Marketplace will feature a fountain/splash pad, public art, landscaped areas, seating and dining tables and fire pit and lounge area. The Parks will also host movies, farmers markets, concerts, food truck rallies, group fitness classes and ice rink and holiday tree lighting.
Kite House is located at the intersection of Georgia Ave. NW and Elder St. NW, in the northern sector of The Parks at Walter Reed master-planned community. The community will include 3.1 million square feet of mixed-use development across 66-acres. The community is a 10-minute walk to Rock Creek National Park and the Takoma Metro Station, additionally, the property is served by eight metrobus routes. The property is five miles from both downtown Washington, D.C. and downtown Bethesda and 1.5 miles from downtown Silver Spring. Additionally, the community is three miles from Capital Beltway (Interstate 495) offering direct access to the entire Washington, D.C. and Baltimore metropolitan region and rail connections such as Amtrak, MARC and VRE trains.
The JLL Capital Markets debt team that represented the borrower was led by Senior Managing Directors Susan Carras and Jamie Leachman, Director Evan Parker and Analyst Andrew Lewis.
“With the closing of Kite House, the development team continues to build out the transformational Parks at Walter Reed project,” said Leachman. “There was significant interest from the lending community with the recent success of the first condo project within The Parks at Walter Reed, The Brooks, as well as the proximity to the adjacent Whole Foods.”