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NEW YORK, May 6, 2021 /PRNewswire/ -- Asland Capital Partners, Cedar Realty Trust (NYSE: CDR) and the Goldman Sachs Urban Investment Group announced the formation of a joint venture for the construction of the first phase of Northeast Heights, a mixed-use office and retail development in the Minnesota/Benning submarket of Washington D.C.'s Ward 7 neighborhood. The partnership also announced it has secured $105 million in construction financing from J.P. Morgan.
The first phase of Northeast Heights is a 258,500 square foot six-story commercial building. The office space is 100% leased to the Washington, D.C., Department of General Services (DGS) for its headquarters. The building includes 18,000 square feet of street-level retail. Cedar Realty Trust and Asland Capital Partners are co-developing the property while the Goldman Sachs Urban Investment Group is serving as a strategic capital partner. Trammell Crow Company, one of the nation's largest commercial real estate developers and investors, is the designated fee developer. A JLL Capital Markets team comprised by Roland Merchant Jr., Nicco Lupo and Thomas Pryor arranged the debt and equity financing. Relocation of the DGS headquarters to Ward 7 was announced by Mayor Muriel Bowser in 2020 as part of the city's revitalization strategy to spark economic activity and investment in the area, and to bring retail, entertainment and dining options to the neighborhood. Construction is expected to begin in Q2 2021.