Grosvenor, a property owner and developer with a 70-year track record in the US and Canada, announces that its North American Structured Development Finance (‘SDF’) business has closed a new financing commitment with Hoffman & Associates to build West Falls Condo, a mixed-use condominium project in Falls Church, Virginia. The transaction is the fifth deal capitalized into Grosvenor’s True North III Partnership. 

Grosvenor’s $27.8m commitment will be used by Hoffman & Associates for the development of a 126-unit property including over 24,000 square feet of ground floor retail. Designed to qualify for LEED Gold, West Falls Condo is situated within Hoffman’s nearly 10-acre master planned West Falls community which will deliver a vibrant mix of office, hotel, apartments, condominiums, retail and senior housing along with almost an acre of open space for public use. 

The project aligns well with Grosvenor’s strategy to invest in high-quality, sustainably built housing near transit with a best-in-class developer. Grosvenor’s relationship with Hoffman & Associates began in 2015 with a $20.6m loan for the construction of The Bower, a mixed-use condominium development located in Washington, D.C.’s Navy Yard neighbourhood. Last year, Grosvenor formed its first joint venture with the Hoffman team to build Waterfront Station II, a 449-unit, mixed-use, mixed-income apartment project with 136 non-market rate units affordable to residents earning 30%-50% of area median income.

“We value our strategic partnership with Hoffman & Associates,” said Alexandra Johns, Senior Vice President of Co-Investment for Grosvenor’s North American property business. “We’re especially excited by the thoughtful design of West Falls. Living here will be the perfect blend of convenience and cool.” 

“Hoffman & Associates has been following our passion for community-centric, sustainable development for nearly 30 years. We are thrilled to bring our expertise to West Falls and to work with the City of Falls Church on this dynamic neighborhood that will bring people together and celebrate this vibrant community,” said Mark Dorigan, Chief Executive Officer of Hoffman & Associates.

 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 capital provider to 77 residential development projects with over 8,000 residential units. Lending over $741m to-date, Grosvenor’s co-investment projects represent $4.5bn in gross development value.

West Falls Condo and Waterfront Station II with Hoffman & Associates follow Grosvenor’s preceding True North III commitments, which include: Kite House, a 6-story condominium development at the Parks at Walter Reed with Hines, Urban Atlantic and Triden Development Group; Intersect at O, 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.

Grosvenor has operated a diversified real estate 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 ownership and development, Grosvenor values long-term partnerships: across their nine active investment partners, the average relationship is 20 years. The Company is guided by ESG principles and a promise to achieve net zero operations by 2030.