BHI, the U.S division of Israel’s Bank Hapoalim, has funded $26.5 million in construction financing for the redevelopment of 629 E. Main Street in Richmond, Virginia.
The 12- story office building will be converted to mixed use multi-family by Douglas Development Corporation (DDC), which will convert the property to 188 rental units comprising studios and one and two-bedroom apartments, and 132,806 square feet of commercial space.
The construction of 629 E. Main Street will allow for a complete renovation of the building, which was built in 1922, while still preserving its historic interior and architectural details.
The property is located in the heart of downtown Richmond, the Virginia state capital, minutes from the Virginia State Capitol building, City Hall, and the city’s main attractions. Richmond is the third most populous area in the state and a transportation crossroads, home to multiple corporations and five of the state’s largest law firms.
“BHI works with us as an expert partner that understands our business and supports our goals. The bank has demonstrated confidence in our vision for the conversion of 629 E. Main Street, which we believe is a prime property, especially given its central location and period architecture,” said Norman Jemal, Principal of Douglas Development Corporation.
629 Main Street is the second similar transaction that BHI has funded for Douglas Development, which has a 30-year track record in the District of Columbia as well as surrounding suburban Virginia and Maryland,.
“BHI’s long-standing relationship with Douglas Development Corporation is indicative of our personal approach to client service. We tailor financial solutions to meet clients’ individual needs and growth objectives. Our goal is to partner with clients, not just for a single transaction, but over the long term,” said Gil Karni, Chief Executive Officer of BHI.
“The repurposing of assets has become a highly viable approach to meet the burgeoning demand in the multi-family sector. We have worked with Norman and his team over a period of years. They recognized the potential of the Richmond property and we welcome the opportunity to collaborate with them again on this new project,” said Mimi Vu, First Vice President, Head of N.A. Originations at BHI.