The Wharf Achieves Landmark $1.15 Billion Financing for Future Growth
The District Wharf, managed by District Wharf Properties (DWP), reached a historic milestone with the announcement of a successful refinancing deal worth $1.15 billion. This refinancing represents a major consolidation of debt associated with both Phase 1 and Phase 2 of the waterfront neighborhood, which spans nearly a mile along Washington, D.C.'s waterfront. As the largest refinancing in modern D.C. real estate history, it fully underscores the significance of The Wharf in the local real estate landscape.
Andrew Son, the CEO of District Wharf Properties, expressed his enthusiasm about this pivotal refinancing, stating, "This landmark refinancing marks a new chapter for The Wharf, affirming its transformation into one of the nation's premier waterfront destinations." The CEO acknowledged the collaboration and confidence shown by the capital partners involved, reflecting the team's commitment throughout this complex effort. The deal not only underscores DWP’s vision of fostering an inclusive and thriving waterfront community but also signals long-term economic and cultural benefits for Washington, D.C.
According to Monte Lippert, Senior Vice President of Investment Management at DWP, the new financing structure will transition the project from a construction-centric model to a more streamlined, long-term financing approach. This change promises improved stability and further growth potential for The Wharf. With its soaring commercial and residential rents, the location is appealing to residents and businesses alike. With over 100 events held annually and attracting approximately 8 million visitors each year, The Wharf has cemented its position as a go-to destination in the heart of the District.
The refinancing comes at a time when the District has reported sufficient tax revenue from The Wharf to repay $198 million worth of Tax Increment Financing (TIF) revenue bonds a staggering 15 years ahead of schedule. These bonds previously financed crucial public infrastructure developments as part of a transformative public-private partnership. Now, the more than $50 million generated annually in sales and property taxes from The Wharf will significantly bolster the District's General Fund.
This significant refinancing was orchestrated by District Wharf Properties along with PSP Investments, with Eastdil Secured serving as the financial advisor. Key players in the lending process included Wells Fargo, Morgan Stanley, and The Goldman Sachs Group, with legal representation provided by Milbank, Pillsbury, and Davies on behalf of the borrower.
Since its inception, District Wharf Properties has positioned itself as an industry leader in the management and financing of mixed-use developments. DWP, established in 2021, is responsible for overseeing the ambitious multi-billion-dollar project that has successfully attracted both residents and visitors to its 3.3 million square feet of commercial space.
As the Wharf continues to flourish under DWP’s management, it stands as an emblem of what strategic investment and planning can achieve in urban revitalization. With The Wharf now poised for greater growth, it is set to further enhance Washington, D.C.'s cultural landscape and economic framework, continuing to draw locals and tourists alike into its vibrant mixed-use community. For further details, you can explore
wharfdc.com.
With its unique blend of residential, retail, and recreational spaces, The Wharf undoubtedly shapes Washington D.C.'s waterfront identity, marking a significant chapter in the city's ongoing evolution.