Dive Brief:
- Another new apartment in the NoMa section of Washington, D.C., is facing financial difficulties.
- The 13-story, 99-unit Tribeca NoMa project, a joint venture between Urban Investment Partners, Kadida Development, Alliance Development and United Investment, is being foreclosed upon, according to Bisnow. The property, which is 89% occupied, is set for auction on June 20 at Towson, Maryland-based Alex Cooper Auctioneers.
- UIP, which led the development, began building the project in 2018. It opened in 2021. A $35 million construction loan funded the development. The developers refinanced their debt with a $39.9 million CMBS loan in 2022. The loan, which matures on July 9, was transferred to a special servicer, CBRE Loan Services, in April, according to Bisnow.
Dive Insight:
Tribeca wasn’t initially envisioned as a rental project, but economic circumstances forced the developers to change course.
“This project was originally planned as condos, but after a slow sales start, the project was reprogrammed as apartments,” William Rich, president of Delta Associates, an Alexandria, Virginia-based research firm that covers the mid-Atlantic region, told Multifamily Dive.
Not surprisingly, the building's features include condo-level finishes, including high-end appliances, custom cabinetry, a rooftop terrace with fire pits, a club suite and open-concept layouts, according to the Alex Cooper listing.
Unit sizes range from 741 square feet to 1,202 square feet and monthly rents are $2,412 to $4,148 for one- and two-bedroom apartments, according to Apartments.com. The property includes a fitness center, clubhouse, concierge and rooftop terrace.
Tribeca NoMa is the second high-profile building to go to auction in the Washington, D.C., submarket near Union Station that has seen a large number of new deliveries recently. In May, a 110-unit apartment building in NoMa owned by New York City-based Ranger Properties went into foreclosure.
Over the past two years, more than 3,300 units have been delivered in the NoMa area of the city, with another 3,000 units expected to come online over the next three years, according to Rich.
“It’s quite an active marketplace,” Rich said. “So there’s a lot of competition for renters in that part of the city.”
Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.
