Bethesda, MD, September 5, 2017 –
CAS Riegler Companies (CASR), Neighborhood Restaurant Group (NRG), and May Development (May) announced that a new Class-A apartment and retail development at 1401 Pennsylvania Avenue, SE is fully funded. The companies secured a $44,536,250 loan with EagleBank and a $17,000,000 preferred equity investment provided by EB5 Capital. Phillips Realty Capital arranged both components of the capital stack.
“We were seeking capital partners that understood why this is the opportune time for a best-in-class lifestyle-focused residential community in this neighborhood,” said Kevin Riegler of CAS Riegler Companies. “EagleBank provided the construction loan, and EB5 Capital provided the additional equity financing necessary for this kind of forward-looking development project. The affiliation between Phillips and EB5 Capital provided a seamless execution of this unique financing vehicle.”
The 1401 Penn development will offer residents 167 fully-amenitized apartments with high-end finishes and spectacular views of the U.S. Capitol building and Anacostia River. The seven-story building will offer a mix of studio, one-bedroom, two-bedroom, and three- bedroom apartments with innovative ground-level retail and an underground parking garage. Located only 50 feet from the Potomac Avenue three-line Metro Station and a 10-minute walk from Eastern Market and Barracks Row, 1401 Penn will be the marquee residential development in a burgeoning area of Capitol Hill.
NRG has pre-leased and will operate approximately 13,500 SF of the 19,000 SF first floor retail space to house a restaurant, beer and cocktail bars, a food market and a coffee shop. NRG will assemble and manage all the food and beverage offerings in this space, installing some NRG-branded concepts as well as unique offerings from chefs and restaurateurs outside the group’s collection, while also providing the marketing and communications direction for both the dining and residential components. This one-of-a-kind space will be designed as an integrated amenity for residents of the building as well as a draw for other consumers in the neighborhood.
PUD redevelopment approvals were received in April 2016. Groundbreaking is planned for early September, with delivery expected in the summer of 2019. Additional team members include Tishman Construction and Antunovich Associates architects.