BHI, a full-service commercial bank, has arranged $26.5 million in construction financing for the redevelopment of 629 East Main Street in Richmond, Virginia, a 12-story office building that will be converted to mixed use multi-family. The borrower, Douglas Development Corporation (DDC), will convert the property to 188 rental units comprising studios and one and two-bedroom apartments and 132,806 square feet of commercial space.
The construction will encompass a complete renovation of the building, which was built in 1922, while preserving its historic interior and architectural details.
“BHI works with us to understand our business and support our goals,” said Norman Jemal, principal of DDC. “The bank has demonstrated confidence in our vision for the conversion of 629 East Main Street, which we believe is a prime property, especially given its central location and period architecture.”
629 Main Street is the second similar transaction that BHI has funded for Douglas Development, which has a thirty-year track record in the District of Columbia as well as surrounding suburban Virginia and Maryland.
“The repurposing of assets has become a highly viable approach to meet the burgeoning demand in the multi-family sector,” said Steven Caligor, executive vice president and division executive of the BHI Structured Finance Group-CRE, healthcare, technology and treasury services. “We have worked with Norman and his team over a period of years. They recognized the potential of the Richmond property and we welcome the opportunity to collaborate with them again on this new project.”
