{"id":884,"date":"2025-01-16T00:00:00","date_gmt":"2025-01-16T00:00:00","guid":{"rendered":"http:\/\/www.dc4reality.org\/updates\/?p=884"},"modified":"2025-01-17T14:53:14","modified_gmt":"2025-01-17T14:53:14","slug":"fwd-1617-u-street-list-when-will-we-stop-selling-off-our-future-re-adamsmorgan-146m-loan-for-donatellis-columbia-heights-apartment-complex-hits-special-servicing","status":"publish","type":"post","link":"http:\/\/www.dc4reality.org\/updates\/884","title":{"rendered":"Fwd: [1617 U Street List] When Will We Stop Selling Off Our Future? Re: [adamsmorgan] $146M Loan For Donatelli’s Columbia Heights Apartment Complex Hits Special Servicing"},"content":{"rendered":"
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———- Forwarded message ———-
From: Chris R. Otten<\/b> <crotten2@gmail.com<\/a><\/a>><\/p>\n

Subject: [1617 U Street List] When Will We Stop Selling Off Our Future? Re: [adamsmorgan] $146M Loan For Donatelli's Columbia Heights Apartment Complex Hits Special Servicing
To: adamsmorgan@groups.io<\/a><\/a>
Cc: “Nadeau, Brianne K. (Council)” <bnadeau@dccouncil.gov<\/a><\/a>>, chenderson@dccouncil.gov<\/a><\/a>, kmcduffie@dccouncil.gov<\/a><\/a>, rwhite@dccouncil.gov<\/a><\/a>, abonds@dccouncil.gov<\/a><\/a>, bpinto@dccouncil.us<\/a><\/a>, pmendelson@dccouncil.gov<\/a><\/a>, jlewisgeorge@dccouncil.gov<\/a><\/a><\/p>\n

<\/p>\n

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When Will We Stop Selling Off Our Future?<\/b><\/font><\/p>\n

How many times must we watch public land and air rights handed over by the Mayor and Council, only to be exploited by real estate speculators in pursuit of immense profits? These public land deals\u2014complete with tax abatements and blessed zoning entitlements\u2014quickly enrich fly-by-night land-hucksters peddling the illusion of Inclusionary Zoning (IZ) units<\/a> and more “market-rate” housing. Meanwhile, they prop up the mercantile class (bankers) at the expense of our public assets, increase displacement pressures, and make a mockery of the basic human right to safe, dignified shelter.
<\/font><\/p>\n

The private real estate market, built on collusion and profiteering<\/a>, cannot solve the affordable housing crisis it continues to fuel.\u00a0<\/font><\/p>\n

Decision-makers with a duty of care to the public must recognize that we cannot build our way out of this crisis with more luxury housing and the woefully inadequate, some say failed “affordable” IZ program.<\/font><\/p>\n

We need bold policy shifts to decommodify housing<\/b>, stabilize costs, and ultimately bring them down.
<\/b><\/font><\/p>\n

Social housing<\/a><\/b>\u2014a proven model in cities worldwide\u2014offers a real path forward. It\u2019s time to end this cycle of public giveaways and start systemically investing in structurally sound and effective housing policies that prioritize DC's people over some private-developer's profit margins.<\/font><\/p>\n

The story below is yet another painful reminder of why DC's posture must change. Let\u2019s end the giveaways once and for all.<\/font><\/p>\n

Chris Otten, SHIMBY<\/b><\/font><\/p>\n


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On Thu, Jan 16, 2025 at 4:28\u202fPM William Jordan via groups.io<\/a> <whj=melanet.com@groups.io<\/a><\/a>> wrote:<\/div>\n

<\/p>\n

\u00a0<\/p>\n

DC's entire housing policy foundations, especially affordable, are built upon the assumption that this project was a run-a-way success.\u00a0 \u00a0This project receive basically free city land, a tax abatement bailout, allowed to renege on community benefits requirements including affordability, and a zoning free hand.\u00a0 \u00a0<\/p>\n

\u00a0<\/p>\n

I was just at a National League of Cities event where everyone was applauding this as the future of housing and public private partnerships.<\/p>\n

\u00a0<\/p>\n

Let the bailout begin.<\/p>\n

\u00a0<\/p>\n

William<\/p>\n

\u00a0<\/p>\n

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$146M Loan For Donatelli's Columbia Heights Apartment Complex Hits Special Servicing<\/h1>\n<\/p><\/div>\n
\n
\n
Washington, D.C.<\/a>Multifamily<\/a><\/div>\n
January 16, 2025<\/span>\u00a0<\/span>Emily Wishingrad, Washington, D.C.\u00a0<\/span><\/a><\/span><\/a><\/span><\/div>\n<\/p><\/div>\n
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The developer\u00a0of a 373-unit apartment building next to the\u00a0Columbia Heights<\/a>\u00a0Metro station has yet\u00a0to pay back its loan after it matured in July.<\/p>\n

\"Placeholder\"<\/div>\n
Google Maps<\/a><\/div>\n
The Highland Park apartment complex next to the Columbia Heights Metro station.<\/span><\/div>\n

At least two securitized\u00a0pieces of\u00a0Donatelli Development<\/a>\u2019s $146M loan on the Highland Park building at 1400 Irving St. NW<\/a> were transferred to special servicing in October, according to December servicer commentary in the\u00a0Morningstar Credit<\/a>\u00a0database.\u00a0<\/p>\n

Donatelli didn't respond to a request for comment. The special servicer,\u00a0CBRE Loan Services<\/a>, declined to comment.<\/p>\n

The property was refinanced for $146M in July 2022, and two pieces of that loan totaling\u00a0$74M and\u00a0$30M were sold into commercial real estate collateralized loan obligation\u00a0pools.<\/p>\n

The property was 85% occupied when the loan was issued, and it has since increased to 95%, but it appears the landlord hasn't hit targets for rent increases. The\u00a0issuer projected the net operating income would reach roughly $9M at stabilization, but the property's latest reported NOI was $7.2M, according to Morningstar.\u00a0<\/p>\n

\u201cIt looks like it\u2019s not hitting its plan, and trying to refi in this environment but with this amount of debt was always going to be a challenge,\u201d\u00a0Morningstar Credit<\/a>\u00a0Head of CRE Analytics\u00a0David Putro<\/a>\u00a0told\u00a0Bisnow<\/i>.<\/p>\n

The 18K SF of ground-floor retail is occupied by Z-Burger, a mediterranean\u00a0restaurant, a coffee shop and a Lou\u2019s City Bar. The\u00a0Wawa<\/a>\u00a0at the property closed in June 2022, but the company has a corporate guarantee to pay the rent through 2034,\u00a0<\/span>according to\u00a0a Morningstar presale report<\/a>\u00a0on one of the loan pieces.\u00a0<\/p>\n

The presale report\u00a0said Donatelli planned to \u201cincrease the multifamily rents, stabilize the residential occupancy, and back-fill the dark Wawa commercial space.\u201d<\/p>\n

Highland Park\u00a0was appraised at $204M when the loan was originated. The property doesn't appear to have any more recent appraisals.<\/p>\n

Donatelli completed the project's two phases in 2009 and 2013. The development\u00a0cost was $70M<\/a>, according to D.C.'s Office of the Deputy Mayor for Planning and Economic Development, which said 20%\u00a0of the\u00a0apartments were\u00a0reserved as affordable.<\/p>\n

The neighborhood\u00a0surrounding Highland Park has had a few notable closings over the past year. The CVS across\u00a014th\u00a0Street closed last February,\u00a0citing crime<\/a>\u00a0as the reason.\u00a0Across Irving Street from the property, the 540K SF DC USA mall saw Petco\u00a0close last week<\/a>, while DSW is also set to shutter this month,\u00a0Popville reported<\/a>. They follow\u00a0Five Below\u2019s closure<\/a>\u00a0at the mall last January. Just over 81K SF at DC USA is being marketed\u00a0on LoopNet<\/a>.<\/p>\n<\/p><\/div>\n

Contact Emily Wishingrad at\u00a0<\/span>emily.wishingrad@bisnow.com<\/a><\/a><\/div>\n<\/p><\/div>\n

<\/font><\/p>\n

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<\/div>\n","protected":false},"excerpt":{"rendered":"

———- Forwarded message ———-From: Chris R. Otten <crotten2@gmail.com> Subject: [1617 U Street List] When Will We Stop Selling Off Our Future? Re: [adamsmorgan] $146M Loan For Donatelli's Columbia Heights Apartment Complex Hits Special ServicingTo: adamsmorgan@groups.ioCc: “Nadeau, Brianne K. (Council)” <bnadeau@dccouncil.gov>, chenderson@dccouncil.gov, kmcduffie@dccouncil.gov, rwhite@dccouncil.gov, abonds@dccouncil.gov, bpinto@dccouncil.us, pmendelson@dccouncil.gov, jlewisgeorge@dccouncil.gov When Will We Stop Selling Off Our Future? […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[59,58,60,61],"class_list":["post-884","post","type-post","status-publish","format-standard","hentry","category-updates","tag-dc","tag-dc4rd","tag-development","tag-displacement"],"_links":{"self":[{"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/posts\/884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/comments?post=884"}],"version-history":[{"count":0,"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/posts\/884\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/media?parent=884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/categories?post=884"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.dc4reality.org\/updates\/wp-json\/wp\/v2\/tags?post=884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}