Berkadia announced that it secured a $92 million construction loan for the development of 2121 Virginia Avenue, a 299-unit Class-A multifamily community in Washington, D.C.'s Foggy Bottom neighborhood. The financing matters because it shows that construction capital is still available for well-located multifamily projects with strong sponsorship, even as broader commercial real estate lending conditions remain selective. The deal's location one block from George Washington University and near major employers such as the U.S. State Department, World Bank, International Monetary Fund, and GW Hospital gives the project a built-in demand base that lenders can underwrite with more confidence than a typical urban development.
The financing was led by Managing Director Brian Gould and Vice President Pat Cunningham from Berkadia's DC Metro team on behalf of Carr Properties, described as a leading owner and developer of premium quality office and residential properties. PNC Bank provided the $92 million, five-year construction loan, with United Bank participating in the financing. Additional Berkadia deal team members included Senior Managing Directors Brian Crivella and Patrick McGlohn, Managing Directors Yalda Ghamarian and Bill Gribbin, and Associate Director Natalie Hershey. The project will feature approximately 16,000 square feet of amenities, including a penthouse pool, lounge and club room overlooking the National Mall, a fitness and wellness center with sauna, coworking and private meeting spaces, a library, game room, and outdoor courtyards.
The source, Yield PRO, published the announcement on September 15, 2026, and quoted Gould directly on the deal's fundamentals. Gould cited "an exceptional sponsor in Carr Properties and a significant built-in demand base from George Washington University and the surrounding employers" as key factors. He also noted that the project's 20-year tax abatement "further strengthens the economics" and that the successful execution of the loan "reflects lender confidence in both the sponsorship and the long-term demand for new housing in Foggy Bottom." The property is surrounded by approximately 750,000 square feet of retail and dining in Foggy Bottom and West End, sits two blocks from the Foggy Bottom-GWU Metro Station with access to the Blue, Orange and Silver lines, and has a Walk Score of 95 and Transit Score of 84. Demolition is underway, with construction expected to begin in September 2026 and first units anticipated in early 2028.
For the Washington, D.C. multifamily sector, the deal suggests that lenders are willing to commit substantial construction capital to projects that combine institutional sponsorship, transit access, and proximity to stable employment anchors. The participation of a regional bank alongside PNC also indicates that construction lending risk is being distributed across multiple balance sheets rather than concentrated in a single institution. The 20-year tax abatement is a material underwriting factor because it reduces the project's effective operating cost burden over a long horizon, potentially improving debt service coverage and making the loan more attractive to lenders. Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, positioned the transaction as evidence of its integrated mortgage banking platform delivering financing for a complex urban development.
The available evidence is limited to a single secondary source, and the dossier does not include loan pricing, interest rate terms, loan-to-cost ratios, or the full capital stack. It also does not specify the exact size or structure of United Bank's participation, nor does it provide independent confirmation of the tax abatement's terms beyond Gould's statement. The timeline from construction start in September 2026 to first units in early 2028 implies a roughly 16-to-18-month construction period, but the source does not detail phasing or delivery risk. What to watch is whether the project meets its stated delivery timeline, whether the Foggy Bottom submarket absorbs 299 new Class-A units at projected rents, and whether the 20-year tax abatement survives any future changes in D.C. housing policy.