Washington, D.C. – September 24, 2021 – Clearwater Capital Management (“Clearwater”), a New York-based real estate investment and advisory firm, in conjunction with its affiliate organization, Clearwater PACE, is pleased to announce the first condominium PACE financing ever completed in Washington, D.C. The total funding of $60 million ($489.79 per Gross Square Foot) is secured by one of the last remaining development sites in the highly coveted master-planned development of Mount Vernon Triangle that comprises nine (9) buildings totaling over two million square feet of Office, Residential, and Retail space. The property sits at the intersection of Third and K streets NW, roughly a half-mile from the Mount Vernon Square, Gallery Place, and Judiciary Square Metro stations. The proposed 122,500 SF, 12-story condo project is planned to have large penthouse units on top and smaller units throughout the building with condo prices ranging from $400,00 to just under $1 million, with an average of $700,000 per unit.
Clearwater structured and closed on a financing package from FVCBank and Stonehill PACE. Proceeds from the loan will allow Community Three to acquire the site and fund construction costs, including predevelopment costs. Ground-breaking is scheduled to commence in Q2 2022 and complete in Q4 of 2023. Condo sales are expected to begin in Q4 of 2022.
The asset will stand out among its peers as the premier, well-located luxury condominium development in Washington, D.C. Apart from the unmatched amenity package with nearly unobstructed views of D.C.’s skyline, we created history in the district today by leveraging C-PACE to solve for sustainable development at a lower cost of capital.” said Clearwater’s Managing Partner, Jonathan Seabolt. Community Three Principal Lynn Hackney added, “Working with the entire Clearwater Capital team was seamless; Jonathan’s well-established capital relationships, expertise, and certainty of execution is exceptional.”
About Clearwater Capital Management, LLC
Clearwater Capital Management, LLC (“Clearwater”) is a New York-based real estate investment and advisory firm focused on executing debt and equity financing solutions and acquisitions, including senior debt, mezzanine loans, preferred equity, and C-PACE financing on behalf of commercial real estate developers, owners, and institutional investors. Clearwater’s team is comprised of former developers, lenders, and real estate private equity investment professionals who leverage their expertise as a competitive advantage when sourcing, structuring, investing and arranging capital on behalf of Clearwater’s clients. Clearwater seeks to be the leading real estate investment and advisory firm in the U.S. and provide its clients with the most competitive terms and reliable executions in the capital markets.
About Clearwater PACE, LLC
Clearwater PACE, LLC is a Delaware Limited Liability Company specializing in accommodating financing arrangements for renovating, restoring, or upgrading future and retroactive real estate projects. Commercial Property Assessed Clean Energy (C-PACE) financing is available across 37 states, and the District of Columbia (D.C.) in the U.S. C-PACE financing structures are designed to provide lower-cost options for construction loans and upgrades to commercial buildings and are available up to 25% percent of the value of your building. The Clearwater PACE team leverages its relationships with C-PACE Capital Providers and C-PACE Program Administrators to fill the gap in the capital stack or replace more expensive forms of capital for commercial real estate developers and property owners.