THE STORY
In the wake of the 2008 housing downturn, new condominium development in Washington, DC had become
difficult to finance, leaving limited new supply in established urban neighborhoods. Northridge identified a
boutique infill opportunity on the H Street Corridor that paired a manageable project scale with strong access to
employment, transit and neighborhood amenities. The investment thesis was straightforward: deliver
appropriately scaled, well-designed housing into a constrained market while using local relationships to
navigate financing and execution risk.
NORTHRIDGE CAPITAL
NORTHRIDGE CAPITAL | 3000 K Street, NW, Suite 415, Washington, DC 20007 | northridgecapital.com
The Opportunity & Risk
A compelling infill thesis required disciplined sizing and careful execution.
OPPORTUNITY
Constrained New Supply
Limited new condominium development created an
opening for appropriately scaled housing in an
established urban neighborhood.
Strategic Location
The site offered walkable access to the U.S. Capitol and
major employment centers and sat three blocks from the
H Street Streetcar connection to Union Station.
CHALLENGE
Financing Risk
Construction financing remained limited for new urban
infill condominium projects following the housing
downturn.
Market & Execution Risk
Sparse comparable sales created uncertainty around
pricing and absorption, while construction delays or
slower sales could extend the investment period and
pressure returns.
From Thesis to Execution
A disciplined, locally informed approach reduced risk while preserving upside.
NORTHRIDGE'S APPROACH
• Right-Sized the Opportunity Rather than pursue a large-scale condominium development in a challenging
financing environment, Northridge selected a boutique project with a more manageable risk profile.
• Leveraged Local Relationships Established relationships with local joint venture and development partners
helped source the opportunity, secure financing and execute the development.
• Invested Behind a Long-Term Urban Thesis The project reflected Northridge’s conviction that well-located
infill assets near major employment centers and transportation nodes would benefit from demand for
walkable, amenity-rich neighborhoods.
OUTCOME
Northridge and its development partner closed construction financing in October 2015 and successfully
executed the development. The project outperformed its original underwriting, driven primarily by condominium
sales prices that were stronger than projected. The result validated both the decision to pursue a right-sized
infill project and the broader thesis around demand for well-located urban housing.
