Urban Atlantic, Hines and Triden said they have transferred two parcels of land for 400,000sqft of new construction at The Parks, a new, mixed-use, mixed-income neighbourhood. The Parks redevelopment is a public-private partnership with The District of Columbia.
The partnership with PGIM Real Estate will build The Vale, a 301-unit apartment building with 18,300sqft of retail along Georgia Avenue. Construction financing of The Vale is provided by Capital One.
On an adjoining half-acre site, Urban Atlantic, Hines and Triden will build The Brooks, an 89-unit condo building. Grosvenor Americas provided financing through its structured development finance program and EagleBank provided construction financing.
Vicki Davis, a managing partner of Urban Atlantic, said: “We are excited to close on the construction financing of the first 400,000sqft of ground-up development within The Parks, bringing us to 700,000sqft completed and under construction in just two years.”
Alfonso Munk, PGIM Real Estate’s Americas CIO, said: “We look forward to working with our experienced development partners at Urban Atlantic, Hines and Triden to bring improved apartment affordability to a well-located but underutilised area, while also creating an opportunity for our investors to seek competitive investment returns alongside positive social and environmental outcomes.”
The transaction, made on behalf of its institutional investors, is the first of an impact-oriented initiative of PGIM Real Estate.
In January last year, PGIM Real Estate hired affordable housing specialist Lisa Davis as it planned to expand its “impact-oriented” real estate investment activities.
PGIM Real Estate previously pursued transformative developments through its US value-add platform, and affordable housing across its US funds through inclusionary housing and apartment portfolio acquisitions that have affordable rents.