BHI announced that it provided a $47 million bridge loan to refinance the Moxy, a hotel located at 1011 K Street NW in downtown Washington, D.C. The borrower is Douglas Development Corporation (DDC).
Located in one of Washington DC’s fastest growing neighborhoods, Moxy (Moxy Hotel Washington DC Website) is a 200-key, 14-story boutique hotel. The property boasts 69,330 square feet, of which 4,342 square feet is set aside for retail purposes. Moxy’s concept targets the millennial consumer and offers an immersive social experience for guests. The hotel officially opened on November 26, 2018.
Douglas Development Corporation’s original loan was comprised of $35 million held by BHI and a $10.6 million mezzanine piece was held by another investment firm. BHI upsized its position by taking out the mezzanine lender and providing a new $47 million bridge loan.
Mimi Vu, Vice President of BHI Commercial Real Estate, who collaborated with the borrower on the refinancing of the loan commented, “This is going to be another success story. This was DDC’s first hotel development and we stood behind this project from the start – we believe in their ability to deliver high quality product given the extensive real estate experience and knowledge that they possess.”
Douglas Development Corporation, established over three decades ago, is the largest private development company in the greater Washington D.C. area. A visionary for investing in underdeveloped areas and revitalizing neighborhoods, the company saw an opportunity with the Moxy in Downtown DC as the area has been undergoing change with the emergence of many companies and businesses. Norman Jemal, Principal of Douglas Development Corporation, stated, “With the support of BHI we were able to enter the hospitality space. BHI’s expertise and assistance in refinancing our existing credit facility is evidence of their trust and confidence in our new business. They are as committed to our success and growth as we are.”
“Our team here at BHI understands the every-changing, dynamic real estate industry, and we’re well-positioned to quickly identify opportunities and create tailored solutions that exceed our clients’ expectations,” said Steven Caligor, Executive Vice President of BHI Commercial Real Estate. “We’ve known Norman and the team at Douglas Development Corporation for years, and this was welcome opportunity to partner with them again to support their impressive growth plans within the hospitality sector.”