The Wharf developers get biggest loan in DC history

Phase 2 of The Wharf is set to open in 2022. (Courtesy Hoffman-Madison Waterfront)

Goldman Sachs Group is leading a group of investors backing the largest construction loan in D.C. history for development of The Wharf’s Phase 2 addition on the Southwest waterfront.

Hoffman-Madison Waterfront, the joint venture of developers Hoffman & Associates and Madison Marquette, secured the $847 million loan through Goldman Sachs, along with Capital Group, Mack Real Estate Group and Pentagon Federal Credit Union.

Phase 2 construction began in March. When complete, in 2022, it will stretch the waterfront to 1 mile and add another 1.25 million square feet of office and residential buildings, more retail, a hotel and expanded marinas.

The Wharf’s development costs are expected to reach $2.5 billion, in total, with more than 3.2 million square feet of development.

“We are excited to welcome Goldman Sachs to the second phase of this vibrant waterfront community,” said Hoffman & Associates CEO Monty Hoffman. “It has been nearly two years since the delivery of Phase 1 of The Wharf, and its success has led to continued confidence as we develop Phase 2.”

While completion is still more than two years away, developers say office pre-leasing is already drawing more interest than during Phase 1 construction.

In December, law firm Williams & Connolly LLP signed a 15-year lease for 300,000 square feet in a pair of Phase 2 office towers.

The developers also recently refinanced $800 million in Phase 1 construction with a group of investors led by Wells Fargo, also one of the largest loans in D.C. history.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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