As part of our broader strategy of financing the construction of new homes in cities experiencing a housing shortage, we’ve invested roughly $6.6 million in the construction of a mixed-use building in the Shaw Neighborhood of Washington, DC.
Business plan
The borrower, Ditto Residential, plans to develop a 10,171 square foot mixed-use building, comprised of seven condominiums and two retail spaces. Construction is already underway on the property with expected completion in the fall of 2019, at which time the borrower plans to list the units for sale. Our goal is to earn consistent cash flow from interest payments through the expected maturity date of our loan in June 2020.
Why we invested
- Booming neighborhood: The property is located along the U street corridor, a burgeoning area in northwest DC, less than two miles from the DC monuments. The neighborhood boasts popular retail stores, such as Trader Joe’s and Whole Foods, alongside numerous restaurants and bars.
- Experienced, local sponsor: This is our second deal with Ditto Residential, a DC-based real estate developer with a strong track record of over 60 completed projects in the DC area, including many projects similar to this mixed-use development.
- Construction-ready: The property has the necessary permits and entitlements to begin construction on this mixed-use building. With the necessary permits and construction already underway, the risk of completing the project has been reduced.
