Republic Properties Corporation and its partners have secured a $170 million debt financing package for the latest phase of construction for the Portals development. The new funding for Phase V will add a 13-level residential building to the three million-plus sqf mixed-use project, which currently includes the Mandarin Oriental Hotel and three Class A office buildings. Once completed, the residential component of the scheme will encompass 373 rental apartments ranging from 506 to 3,400 sqf. CBRE’s Mid-Atlantic Debt & Structured Finance Group arranged the capitalization through senior and mezzanine debt structure involving Capital Source and Parse Capital. “While the construction lending market has proved to be challenging for many large apartment projects attempting to start building,” said David Webb, Vice Chairman, Debt & Structured Finance, CBRE. “The strength of this location and building design, along with strong sponsorship, made it possible to secure this construction debt. This will be a landmark building for Washington, D.C.; the lender group recognized this and worked through a number of market issues.”
