Multi-housing project in the D.C. metro secures $92.34M in financing

MORRISTOWN, Nov. 28, 2023 – JLL Capital Markets announced today that it has arranged the $92.34 million construction financing for Parcel H, a 354-unit, to-be-constructed, 12-story, luxury apartment building located within the Washington, D.C. metro in North Bethesda, Maryland.

JLL worked on behalf of the borrower, LCOR, to secure the four-year, floating-rate loan through SMBC.

In 2001, LCOR entered into a Joint Development Agreement, called the North Bethesda Master Plan, with the Washington Metropolitan Area Transit Authority. Parcel H represents the fourth and final land parcel to be developed by LCOR in the agreement, and together, the four properties have been named “The Quad.” The three current properties include the 294-unit, 2021-built Arrowood; the 341-unit, 2014-built Aurora; and the 312-unit, 2008-built Wentworth House. Once Parcel H is completed, there will be over 1,300 adjacent, LCOR-operated units, as well as shared amenities, parking, operational efficiencies and a sense of community.

Upon completion, Parcel H will feature one-, two- and three-bedroom units as well as nine penthouse units, averaging 881 square feet. The units will offer modern kitchens with quartz countertops, stainless-steel appliances, centrally controlled HVAC electric thermostats, wood-styled flooring, in-unit washers and dryers and floor-to-ceiling windows. Amenities will include a state-of-the-art fitness center, an outdoor pool, an expansive outdoor courtyard with grilling stations and fire pits, a resident lounge with coworking stations, designated meeting rooms and tech pods, indoor and outdoor children’s’ playrooms, a dog park and a penthouse lounge featuring gaming areas and a golf simulator.

Situated at 5400 McGrath Blvd., Parcel H is located within North Bethesda, which includes transit-oriented zoning regulations that encourage the development of higher-density residential and commercial buildings near transit hubs. The Property is situated just a short walk from the North Bethesda Metro Station (Red Line), providing a nine-minute commute to Bethesda and a 26-minute commute to Downtown D.C. The project is also within proximity to the Capital Beltway (I-495) via Rockville Pike and Route 270 via Montrose parkway, providing connectivity to major employment hubs within the vicinity and the greater DC Metro Area. In addition to Parcel H’s impressive regional accessibility, it benefits from one of the densest concentrations of retail, services and restaurant spaces in Maryland with walkable grocers and retailers including Harris Teeter (located within The Quad), Whole Foods, Wegmans (to-be-built) and Pike Rose.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Directors Jon Mikula, Jim Cadranell, and Jamie Leachman and Associate Ryan Carroll.

“Parcel H is the final piece of LCOR's tremendously successful Quad development in North Bethesda. It was a pleasure to arrange this construction financing for the LCOR team at this challenging time in the capital markets.  SMBC delivered exactly the terms we were seeking and beat out numerous other lenders that also recognized the desirability of this sponsorship and location,” said Cadranell.

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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