CITY MARKET AT O SCORES $43 MILLION IN FUNDING
CITY MARKET AT O SCORES $43 MILLION IN FUNDING
FOR NEW HOTEL TOWER
Capital Raised Through DCRC’s EB-5 Immigrant Investor Visa Program
WASHINGTON, DC (April 24, 2013) DCRC-CityMarket LLC, an affiliate of the federally designated DC Regional Center, announces that they will be providing $43 million in debt financing to City Market at O, the one million square foot urban mixed-use development one block from the Washington Convention Center aft the corner of Ninth and O Streets NW in the Shaw neighborhood of Washington, D.C.
The five-year project loan is collateralized by a first deed of trust on a nine-story, 182-room Cambria Suites hotel to be located on the corner of Ninth and O streets NW in Washington, DC. The hotel is a joint venture between Roadside Development, Choice Hotels International (NYSE: CHH) and Concord Hospitality.
“I am delighted to close this latest loan tranche and to help advance this exciting and transformative project,” said David M. Morris, co-owner of the DC Regional Center and an immigration lawyer at Visa Law Group specializing in the EB5, a program created by Congress that encourages the infusion of foreign capital, exchanging U.S. legal residency for job creation benefiting America workers. “The DC Regional Center joined the City Market at O project in 2007 during the pre-development phase, and this year I look forward to closing a $100 million total EB5 funding commitment,” he continued.
The only non-infrastructure project to be fast-tracked for funding by the Obama administration, and one of only 14 projects in the country to be selected, City Market at O will boast 90,000 square feet of retail space and 635 residential units—of which 84 will be set aside for seniors—in addition to the Cambria Suites Hotel. The development will also include retail and restaurants, over 500 vehicle parking spaces, 300+ indoor bike parking stalls and a 270 linear foot rooftop dog park. Restoration is underway of the historic 1881 O Street Market Building, around which the project is centered, which will house a flagship 72,000 square foot Giant Food supermarket. Construction of City Market at O, a $330 million project in total, began in November 2011, with phase one set to deliver in November of 2013. The project is expected to create more than 2,400 new jobs in the DC area.
The all-suite Cambria Suites hotel features spacious, larger than standard hotel rooms, a rooftop pool, fitness center and outdoor urban oasis terrace with open green space featuring sweeping views of the U.S. Capitol and the national monuments. Concord Hospitality will be the developer and manager for the Cambria Suites Hotel, which is a joint venture between Choice Hotels, Concord Hospitality and Roadside
Development. “We are very excited to watch this beautiful hotel come to life, said Mark Laport, president and CEO of Concord Hospitality. “Community is one of our company’s four cornerstones, which is why we look forward to becoming a part of this neighborhood’s bright future.”
The hotel part of the City Market at O project represents an investment of more than $40 million and an estimated 300 jobs to the Washington metro area, which has served as home to the global headquarters of Choice Hotels International since 1968.
Richard Lake, a principle at Roadside Development which is the master developer and owner of the CityMarket at O project, states: “David Morris and his EB5 partners have been with us since 2007 and played a critical role in the project’s overall plan of finance. Today’s loan closing is another step forward to realizing our $100 million EB5 funding plan, which matches foreign investment dollars with what they consider to be worthwhile investments. We’re honored that they share our vision of what the Shaw neighborhood will become.”
On March 4, 2013, Washington, D.C. Mayor Vincent Gray, city officials, community and business leaders, members of the national and Washington, D.C. tourism community and development partners joined the unique “sky breaking” ceremony, marking the start of hotel construction. Last June, Mayor Gray and Deputy DC Mayor Victor Hoskins joined Roadside in Shanghai, China to celebrate the successful EB5 fundraising efforts led by David Morris and the DC Regional Center affiliate, DCRC-CityMarket LLC, is an affiliate of the federally-designated DC Regional Center which raises capital through the EB-5 Immigrant Investor Visa program.
“City Market O is getting an influx of millions of dollars in foreign capital in a climate when commercial financing is still scarce,” says Morris. “The project is creating thousands of new jobs in the transitional Shaw neighborhood and throughout DC, while the participating foreign investors and their families are fulfilling their dream of living in the U.S. – all at no cost to U.S. taxpayers. This is a win-win-win.”
For more information on City Market at O and its EB5 funding, please contact Barbara Martin with BrandLinkDC, 301.229.6770, Barbara@brandlinkdc.com.
About DCRC-CityMarket
DCRC-CityMarket LLC is an affiliate of the DC Regional Center (DCRC). Approved by the Department of Homeland Security’s U.S. Citizenship and Immigration Service since 2008, DCRC raises foreign capital through the EB-5 visa program and provides financing to large mixed-use real estate projects in the DC-Baltimore area. In the last several years, DCRC affiliates have raised more than $200 million for hotel, retail, ports/infrastructure and other commercial developments. David M. Morris, Esq. is an immigration lawyer in DC and is a Managing Member of DCRC. He may be reached at Morris@EB5partners.com or by calling 202-747-1814.
About Roadside Development
Roadside Development (“Roadside”), is a Washington D.C.-based development company, formed more than 13 years ago by Richard Lake, Armond Spikell and Todd Weiss. The company focuses on the creation of retail and mixed-use environments. As one of the leading experts on retail real estate in the Washington metro region, Roadside has acquired, developed, constructed, leased and managed more than 8.5 million square feet of mixed-use and retail projects, including 16 grocery-anchored centers. Roadside has completed or is currently developing a number of urban and suburban projects that demonstrate its talent in developing community-oriented projects, including Cityline at Tenley, CityMarket at Glebe, Stonebridge at Potomac TownCenter, The Village College Park and the Purcellville Gateway. For more information on Roadside, visit http://www.roadsidedevelopment.com/.
About Choice Hotels
Choice Hotels International, Inc. franchises approximately 6,200 hotels, representing more than 499,000 rooms, in the United States and more than 30 other countries and territories. As of December 31, 2012, 394 hotels, representing more than 31,000 rooms, were under construction, awaiting conversion or approved for development in the United States. Additionally, 88 hotels, representing approximately 7,800 rooms, were under construction, awaiting conversion or approved for development in more than 20 other countries and territories. The company’s Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands, as well at its Ascend Hotel Collection membership program, serve guests worldwide.
Choice Hotels International offers the Choice Privileges® rewards program. With nearly 17 million members worldwide, it is one of the fastest growing loyalty programs in the travel industry. Additional corporate information may be found on the Choice Hotels International, Inc. website, which may be accessed at www.choicehotels.com.
About Concord Hospitality
Concord Hospitality Enterprises Company, an award-winning hotel management and development company based in Raleigh, N.C., manages more than 90 hotels offering more than 11,500 guest rooms in 24 states and two Canadian provinces. The company operates hotels and resorts under such well-known industry elite brands as Choice, Marriott, Hilton, Hyatt, and Starwood Hotels, as well as select independent boutique hotels. Formed in 1985, Concord recently was listed as one of the nation’s top management companies in the nation by independent sources, and recently won Choice’s Developer of the Year award for the Cambria Suites brand. For more information, visit www.concordhotels.com.