The Montgomery County MD real estate known as the Twinbrook metro station and the gateway to Rockville is being revamped. On the 26 acre peace of land that surrounds the Twinbrook metro station, JBG development plans to build a mixeduse facility, including, residential real estate, convenient retail, restaurants and commercial space. Also another part of this Montgomery County Maryland real estate project is to do an upgrade on the Twinbrook metro facilities that links the residence of this area to federal office communities. This Rockville Maryland real esate project will be costing JBG roughly $1 billion. Despite the tightening lending processes this project and a few others will be breaking ground within the next several months. This is not the only project that JBG is building. Currently they are also working on the North Bethesda Market, a real estate development that will include a Whole Foods Market, LA Fitness Gym, and 400 residential real estate apartments. The North Bethesda Market project is to be located a block away from the White Flint Metro station. This project broke ground on December 6th and will be partly financed by JBG Urban.
Even with the mortgage industry becoming tighter and banks being more cautious on what they approve, JBG, one of the largest developers in the Washington DC metro area was able to secure the construction loan for the Twinbrook’s project. Part of the financing for this project begun on November 13th, will be acquired through JBG Urban, which has a $2.5 billion pool of equity. This $2.5 billion came from equity produced by this firm over the summer. They plan on investing it in 93 different projects throughout the DC metro area. Brian P. Coulter a managing partner for JBG believes that being able to access large sums of cash from large investors is an advantage that they have over smaller companies, and is one of the reasons they can continue to build these developments. He also thinks JBG has an advantage since they will be in a position to deliver certain projects that other developers have trouble doing since JBG has access to pools of cash.
With interest rates on the rise for construction loans, debt has become a bigger issue for developers obtaining financing. This means developers will have to ask investors to put up more money to develop there projects. According to Joseph W. Donato Jr., a managing director at CB Richard Ellis; there has been a larger focus on location, amount of pre-leasing, and on the strength of the borrower. All in all the lenders have become more strict on how they approve new construction loans.
