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.