In June of this year, we invested in the construction of a five-story mixed-use building in the Shaw neighborhood of Washington, DC, roughly a mile north of downtown. Just five months later, major progress has been made on the building. As you can see from the photos, foundations are in place and the vertical structure is beginning to take shape with structural work advancing to the second floor. The borrower has hit all of their milestones to date, and we anticipate on-time delivery on the project, consisting of seven condos on the upper floors accompanied by ground-floor retail.
This project is another great example of our opportunistic construction financing strategy. By investing in emerging neighborhoods in major US cities, we can target an attractive return (in this case, roughly 8.8% annualized) while taking what we believe is a relatively low risk — the continued revitalization of our cities powered by a broad demographic shift toward walkable, urban living.
We anticipate completion of construction next fall, and look forward to providing you with further updates on this project.
