Best Real Estate Deals honoree: Carlyle Crossing Financing - Washington Business Journal, September 18, 2020
The coronavirus has upended the economy, shuttered stores and delayed projects, but it will not stop the arrival of Wegmans to the city of Alexandria. It doesn’t even appear to have slowed the larger project, dubbed Carlyle Crossing.
"Happy to report that the Covid pandemic has had minimal, if any, impact on our schedule," said Kent Marquis, principal with Bethesda developer Stonebridge Associates Inc.
In July 2019, the developers and investors behind Carlyle Crossing celebrated the start of work on the nearly 1 million-square-foot mixed-use development a block from the Eisenhower Avenue Metro station. But not until Dec. 19, when the team announced it had closed on a $253 million loan with Pacific Life Insurance Co., was this project assured to advance and meet its delivery schedule — fall 2021 for the first residential and the first half of 2022 for the Wegmans and other retail.
Cushman & Wakefield arranged the 10-year construction-to-permanent loan, a deal that completed the financing stack for the megaproject. Carlyle Crossing, sitting on 5.1 acres within Hoffman Town Center, will include roughly 700 residential units across three towers and 210,000 square feet of retail, anchored by an 84,000-square-foot Wegmans designed into the second floor of a retail and parking podium.
With Wegmans above, the developers say, the street level can be lined with a selection of diverse retailers, providing a dining and shopping destination not only for Carlyle Crossing residents, but also for the thousands of National Science Foundation, Patent and Trademark Office and Metro employees nearby. It all added up to an endeavor that was "well-received by the lending community," according to Marshall Scallan, a managing director at Cushman & Wakefield.
The project is led by Stonebridge, Chicago’s Creek Lane Capital and a third, unnamed investor advised by MetLife Investment Management. The architects are Cooper Carry and Hartman Design Group, and it is being constructed by a joint venture of Walsh Construction and Balfour Beatty.
The technical team has extensively reviewed Carlyle Crossing's design plans and layouts "to ensure that we are able to adhere to any Covid-related requirements or preferences," Marquis said. As for its retail plan, while the pandemic has certainly affected that sector, "we are maintaining a patient approach and remain confident in finishing our leasing plan when we deliver in 2022."
The most recent retail flyer for the project, produced by KLNB, shows an unnamed bank and day care center on site. In addition to the residential and retail, Carlyle Crossing will include an elevated, private 3-acre amenity park, fitness centers, a pet spa and wine and coffee bar.
"Carlyle Crossing is an enormous step forward toward realizing Alexandria's vision for Eisenhower," Alexandria Mayor Justin Wilson said of the project.
About the honoree
- Address: 2501 Mandeville Lane, Alexandria
- Deal type: Financing
- Deal size: $253 million
- Arranged by: Cushman & Wakefield
- Development team: Stonebridge Associates, Creek Lane Capital, MetLife-advised investor
The big number
1,550 Parking spaces, across four levels, to be constructed into the retail and parking podium beneath Carlyle Crossing’s 700-some residential units. That includes 500 for the Wegmans alone.
See Carlyle Crossing for more project information.