Award of Excellence
Best Real Estate Transaction: Sale or Re-capitalization - Over $25 million
Project Team
Hoffman-Madison Waterfront - (Developer)
Project Description
The development partnership along with joint venture partner Public Sector Pension Investment Board (PSP), secured an $847M non-recourse loan in September 2019 from The Goldman Sachs Group, Inc. for construction of Phase 2 of The Wharf on Washington, D.C.’s waterfront. It was the largest private construction loan in the city’s history at the time. The non-recourse transaction was led by Goldman Sachs along with syndicate members Starwood Capital Group, Mack Real Estate Group, and Pentagon Federal Credit Union. The record-breaking transaction was brokered by Eastdil Secured, LLC, one of the country’s premier private real estate investment banking companies. It follows three months after the development team secured an $800M loan for The Wharf with a Wells Fargo-led syndicate to refinance the project's first phase. The Goldman Sachs loan will help further realize the full potential of the waterfront with the delivery of Phase 2 of The Wharf.
Already, the first phase of The Wharf is flourishing with community spaces where residents and visitors alike can enjoy monumental views and a vibrant culture. Its diverse offerings attract visitors from around the city and the world as well as prominent tenants. Phase 1 delivered in October 2017 and includes two condominium buildings, two apartment buildings, three hotels, three office buildings, three music venues, numerous restaurants, shops, a reimagined Fish Market, parks, and four public piers. Phase 2 will deliver in 2022 and will feature an additional 1.25 million square feet of mixed-use development. It will comprise two office buildings, 255 apartments, a Pendry hotel, the first condominium building designed by Rafael Viñoly Architects in D.C., and a curated selection of retail and restaurants.
Continuing the momentum of Phase 1, and with the financial backing of the $847M Goldman Sachs loan, Phase 2 of The Wharf has already achieved success with the preleasing of several noteworthy tenants. The exceptional additions noted below complement The Wharf’s extraordinary curation of retail, residential, office, entertainment, and dining experiences.
- Williams & Connolly, one of the nation’s premier law firms with a rich D.C. history, signed a 15-year, 290,000 square foot lease parcels six at 680 Maine Avenue and seven at 670 Maine Avenue. The LEED Gold trophy office tower is designed by Manhattan-based SHoP Architects to maximize waterfront views and allow for an efficient, modern office design.
- The Pendry Hotel’s first D.C. location will be in Phase 2 of The Wharf.
- The Atlantic will occupy the top two floors of office space within 610 Water Street. The 90,000 SF office building is designed by awarding-winning Morris Adjmi Architects.
- Sales recently began for the 12-story Amaris condo building, designed by architect Rafael Viñoly with interiors by Thomas Juul-Hansen. It will include 96 units with floor plans ranging from one to four bedrooms, including unique penthouse residences.
The acquisition of the Goldman Sachs loan for The Wharf Phase 2 construction allows for the continued success of the project. As evidenced by the prominent tenants committed to reside in Phase 2 of the development, the Goldman Sachs loan propels the mission of The Wharf forward into Phase 2