Prudential Mortgage Capital Company secured $115.8 million in permanent
financing through Freddie Mac for Art Place at Fort Totten, a 520-unit
mixed-income and mixed-use development in Northeast Washington, D.C.,
the company announced today. The borrower is an affiliate of The Morris
and Gwendolyn Cafritz Foundation. Prudential Mortgage Capital Company is
the commercial mortgage lending business of Prudential Financial, Inc.
(NYSE:PRU).
Prudential Financial’s $400 million impact investment portfolio was also
a participant in the financing of this transaction, providing $25
million. The impact portfolio directs investments to companies, projects
and funds that create positive social change and help individuals and
communities achieve economic success.
When completed, Art Place at Fort Totten will include 520 rental units,
and 103,502 square-feet of commercial space. It is the first phase of a
three-phase development that will be located adjacent to the Fort Totten
Metro Station. The completed project will include a fitness center,
restaurant, children’s museum and a community center for the arts.
Of the 520 residential units, 121 will be designated affordable, with
long-term income and rent restrictions. The remaining units will be
market-rate. The Fort Totten neighborhood is diverse, ranging from quiet
residential neighborhoods and local shopping streets to new high-rise
development and industrial uses. Art Place is located almost adjacent to
the Fort Totten Metrorail stop which is served by the Red, Green and
Yellow subway lines providing easy access to employment centers
throughout the region. The complex is expected to be the epicenter of a
newly revitalized neighborhood, joining adjacent sites that have either
recently been developed, or are currently being developed.
“The scale and design of this property coupled with the longstanding
commitment of the borrower to serving Washington, D.C., will make this a
dynamic development for the Fort Totten community,” said Alex Viorst, a
principal with Prudential Mortgage Capital Company’s affordable housing
business. “When this property is completed, it will bring high quality
market rate and affordable housing to the community, along with new
commercial and retail opportunities for neighborhood residents.”
Added Lata Reddy, vice president of Corporate Social Responsibility at
Prudential and president of The Prudential Foundation, “We are pleased
to partner with Prudential Mortgage Capital Company on this important
investment. For many households, transportation and housing are the two
largest expenditures, and this project will lessen both burdens on its
residents. Prudential is focused on helping working families provide for
their basic needs, so projects like Art Place are a perfect fit.”
“The Foundation is committed to building a strong community for
Washington area residents,” said Calvin Cafritz, Chairman of the Board
of The Morris and Gwendolyn Cafritz Foundation. “Art Place will be an
important catalyst to the Ft. Totten neighborhood creating a new
vibrancy with the addition of residential apartments, shopping,
restaurants and a new fitness center while providing 121 apartments as
affordable with long-term income and rent restrictions.”
Prudential Mortgage Capital Company is a national full-service,
commercial and multifamily mortgage finance business with more than $79
billion in assets under management and administration as of March 31,
2014. Leveraging a 135-year history of real estate finance, the company
offers one of the most comprehensive lines of real estate finance
products and originates loans for Fannie Mae DUS®, Freddie Mac Program
Plus® and specialized affordable housing programs; FHA; Conduit;
Prudential’s general account and proprietary balance sheet program; and
other institutional investors. The company maintains a loan servicing
portfolio of approximately $76.7 billion, as of June 30, 2014. For more
information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1 trillion of assets under management as of June 30, 2014,
has operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit www.news.prudential.com.
Copyright Business Wire 2014