22 September 2021
Grosvenor Americas closes its second financing commitment with Hines, Urban Atlantic & Triden in Washington, D.C.
Marks third deal into Grosvenor's True North III Partnership
Grosvenor Americas (‘Grosvenor’), a privately owned international owner and developer, announces that its Structured Development Finance (‘SDF’) business has closed a new financing commitment with Hines, Urban Atlantic and Triden Development Group through Grosvenor’s True North III Partnership.
The $21.1M commitment is for the development of Kite House, a 109-unit condominium project with 11,385 SF of street-level retail in The Parks at Walter Reed 66-acre masterplan community located in Northwest Washington, D.C. Amenities include a concierge, courtyard, bike parking and fitness centre. Kite house, designed by Hickok Cole, offers an array of unit types and pricing alternatives with nine units priced below market. The 6-story mixed-use building is anticipated to complete in the spring of 2023.
Kite House is located six blocks from The Brooks, an 89-unit condominium for which Grosvenor provided a $12.4M loan to Hines, Urban Atlantic and Triden in 2018.
Upon completion, The Parks will include over 2,200 units of townhomes, condos and apartments (including more than 430 affordable units), 370,000 square feet of office, 150,000 square feet of retail, and 480,000 square feet for non-profit uses.
Due to the presence of the Army campus, various waves of development have historically skipped over the neighborhoods near Walter Reed. The new housing, retail and recreation spaces created at The Parks will serve as an activity hub for the surrounding community - residents will be able to stroll to Whole Foods, several restaurants and explore the outdoors. In addition, Children’s Hospital and Virginia Tech are expanding on the adjacent site, providing job opportunities within walking distance.
Alexandra Johns, SVP Co-Investment at Grosvenor Americas said: “Kite House marks our second deal with Hines, Urban Atlantic and Triden. We deeply value the business relationship that our teams have developed since working together at The Parks in 2018. With population growth in the submarket projected to grow 8% by 2025 and new employment drivers, the area continues to thrive. We are so pleased to be a part of The Parks, with its thoughtful land plan and extraordinary community.”
“Kite House represents a pivotal step as we continue to transform The Parks,” commented Chuck Watters, Senior Managing Director at Hines. “We look forward to working with Grosvenor to deliver much needed for-sale housing with immediate access to high quality amenities and thoughtful green spaces to the community.”
The closing of Kite House marks the third transaction for Grosvenor’s True North III Partnership. It follows the announcements of a 10-story condominium project at Eighth and O Streets NW in Washington, D.C. with Roadside Development and a 295-unit apartment complex with Intracorp in Seattle earlier this year.
True North III is the third iteration of a Grosvenor partnership to fund residential and mixed-use developments in the U.S. and Canada. Since 2000, the Company's SDF business has acted as a captial proivder to 76 residential development projects representing over 6,300 residential units and $3.5bn in gross development value.
Grosvenor has operated a diversified real estate development and investment business in North America since 1952. The Company actively manages its $2.8B investment portfolio and is executing on a proprietary development pipeline that will deliver 4,200 homes across its active markets. Consistent with the firm’s farsighted approach to investment and development, Grosvenor Americas values long term partnerships: across their nine active investment partners, the average relationship is 20 years.
Notes to Editors
About Grosvenor Americas:
Grosvenor Americas has been an active developer and investor in several high-quality cities across the U.S. and Canada for 69 years. Our strategy is to invest in vibrant urban areas where our activities can make a positive contribution to neighborhoods and communities, which we deliver through our Living Cities approach. Since 2004, we have helped supply 12,300 quality homes and have transacted $4.6bn in investment property in the high-growth markets where we operate.
As one of the first North American signatories to the World Green Building Council’s Net Zero Carbon Buildings Commitment, our business is guided by ESG principles and underpinned by a promise to achieve net zero operations by 2030.
We are active in the high-growth transit-oriented and/or amenity-rich neighborhoods of Seattle, Vancouver, the San Francisco Bay Area and Washington, D.C. Our Development Program focuses on residential mixed-use projects; most developments in our USD $2.7bn pipeline will deliver to LEED Gold standards. We also add value to residential, commercial and retail assets, actively managing a portfolio of 59 stable properties in our Investment Program. Additionally, we run a Structured Development Finance business that provides funds to leading residential developers who provide much-needed housing.
As of December 31, 2020, Grosvenor Americas had assets under management of USD $3.6bn.
We are part of Grosvenor Group, one of the world's largest privately-owned international property companies and active in Britain & Ireland, Europe, Asia Pacific and North America. With $15.2bn of assets under management and a track record of 344 years, Grosvenor develops, manages and invests with a purpose of improving property and places to deliver lasting commercial and social benefit.
To read more about Living Cities please click here
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Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 240 cities in 27 countries. Hines oversees a portfolio of assets under management valued at approximately $160.9 billion¹, including $81.7 billion in assets under management for which Hines serves as investment manager, and $79.2 billion representing more than 172.9 million square feet of assets for which Hines provides third-party property-level services. Historically, Hines has developed, redeveloped or acquired approximately 1,450 properties, totaling over 485 million square feet. The firm has more than 180 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information. ¹Includes both the global Hines organization as well as RIA AUM as of December 31, 2020.
Visit www.hines.com for more information.
About Urban Atlantic:
Since its founding in 1998, Urban Atlantic has established a strong track record of successfully investing and developing in transformational, large-scale, urban communities. Urban Atlantic focuses on creating vibrant, mixed-use, mixed-income, TOD neighborhoods. Urban Atlantic is a leader in sustainability and inclusiveness in all of its communities. Headquartered in the Washington metro area for 20 years, the firm’s portfolio includes over $2 billion in completed real estate developments, creating nearly 9,000 residential units and 1 million square feet of commercial space. Urban Atlantic’s third-party investments have leveraged an additional $2 billion in real estate developments and operating businesses in emerging markets.
Visit www.urban-atlantic.com for more information.
About Triden Development Group
Triden Development Group was established in 2004 as a District-based Certified Business Enterprise (“CBE”) and is a master development partner on more than $7 billion of local mixed- use projects. The Triden team has nearly 80 years of combined experience at the forefront of public-private collaborations addressing economic development challenges in the District of Columbia and major urban centers throughout the nation. Triden provides development, equity investment and advisory services related to infrastructure, retail and community benefits, as well as custom, project-specific assignments. As a local equity participant and investment development partner in projects including three of the largest mixed-use projects underway in the District of Columbia, CityCenterDC, The Wharf and now The Parks at Walter Reed, Triden is committed to long-term projects with transformative impact.