By IvyLee Rosario
A joint venture of Trammell Crow Co., Fort Lincoln New Town Corp. and CSG Urban Partners has secured $61 million in financing to recapitalize The Shops at Dakota Crossing, a retail center in Washington, D.C.
Walker & Dunlop arranged the loan, which will replace the existing construction capital stack with a stretch senior bridge loan, providing future funding based on additional leasing and capital costs. Managing Director Jamie Butler led the Structured Finance team.
Nearing full occupancy
Located along New York Avenue, The Shops at Dakota Crossing changed the neighborhood by meeting a need for retail options. The 140,000-square-foot property provides high visibility to both commuters and passing residents, leading to it being 98 percent preleased with a mix of tenants including the city’s first Costco, Dick’s Sporting Goods, PetSmart, Starbucks, Lowe’s, Marshalls and Chick-fil-A.
“Our process produced dozens of financing options for the client but what was interesting about the result was simply the diversity of capital sources—all competing for the same proceeds at virtually the same economics,” Butler told Commercial Property Executive. “In fact, the most competitive quotes weren’t from banks but rather from private equity, debt funds, domestic and foreign pension plans and retail REITs. This further confirms the widespread supply of competitive capital in the market and underscores the importance of casting a wide net when seeking financing on any project in the current environment.”
Last month, Walker & Dunlop structured $9.8 million in financing for the construction of SpareSpace Storage in Miami.
Image courtesy of Walker & Dunlop