Financing Secured for Richmond Renovation Project -- Canal Crossing

Washington, DC/Richmond, VA 2002 --- Richmond-based John B. Levy & Company, Inc., is pleased to announce the financing for a complete renovation project in the heart of Richmond. The property, a 112,000 sq. ft. Class A office building, is located on 15th St., between Cary and Dock Streets.

The transaction, a $10,000,000 loan, is for construction rehabilitation financing and is non-recourse. The property, which is historic, is eligible for approximately $5m in both federal and state tax credits.

“What is unique about this transaction is that it is only 30% pre-leased,” said John B. Levy, president, John B. Levy & Company. “This is unheard of in this market, both due to the volatility in the capital markets and the state of the office market,” said Levy. “It is almost impossible to get a construction loan today with a building that is less than 60% pre-leased, but we have a lender who understands this type of deal, knows the lead tenant – Baskervill Architects, and was comfortable with the developer and the program,” said Levy.

Fulton Hill Properties is developing the project, located in the trendy part of Richmond’s downtown known as Shockoe Bottom. “One strength of this project is its location; it offers good access from the city’s main arterial roads, (I – 95, I-195 and Hull Street) and tremendous visibility. Its location right on the canal is adjacent to one of Richmond’s main tourist attractions, and significant pedestrian traffic – and the lender realized these as an asset,” said Levy.

John B. Levy & Company, Inc. is a real estate investment-banking firm founded in 1995 and headquartered in Richmond, Virginia. The firm raises equity or debt for developers and owners of commercial and multi-family projects nationwide. The firm has structured over $1 billion in financing. Despite a tumultuous economic environment over the past 90 days, the firm has successfully closed a number of transactions, each with its own property specific challenges. Representative transactions include: a $43,000,000 in financing for CSC’s new headquarter building in Maryland; $120 million in re-financing for a cluster of office buildings in the Mid-Atlantic region; a $7.4 million acquisition/ rehab loan for a multifamily project in Durham, North Carolina (closed in 20 days) and an office building in Orlando, Florida, a market that has faced significant vacancies over the past 18 months.

Contact: Catherine Timko, The Riddle Company: 202-333-6856/202-917-4381 pgr