M&T RCC provides $21M bridge loan for student housing in Washington, DC

Washington, DC — M&T Realty Capital Corporation (M&T RCC) announced the closing of a $21 million bridge loan for The Lanes at Union Market, a 110-unit multifamily property with 95 market-rate units and 15 inclusionary zoning (IZ) units, located in Washington, DC. This transaction highlights the collaborative efforts between HH Fund and M&T Realty Capital Corporation to create additional dedicated student housing in the DC Market.

The Lanes at Union Market, built in 2022, was acquired by HH Fund at a foreclosure auction in July 2024. Recognizing the need for additional student housing units in the market, the borrower worked diligently with local universities to repurpose the building from a conventional multifamily project into a modern student housing project. The apartment building currently houses close to 50% local student residents, with additional units expected to become available to students in the future.

After an introduction from M&T Bank, M&T RCC utilized its proprietary bridge lending platform for the financing of this asset. The 2-year, interest-only loan will allow the borrower to have the necessary time to execute their business plan.

Dan Lynch, senior VP, led the transaction with contributions from Joanie Wilson, deputy CCO, and Connor Quigley, VP. “M&T was able to provide liquidity in the market for this transitional multifamily asset via our proprietary bridge loan platform,” said Lynch. “This bridge loan exemplifies our commitment to providing flexible financing solutions that drive positive change in our communities.”

“We’re grateful to M&T for their support and flexibility in making this project a reality,” said Lee Chen, principal at HH Fund. “This financing allowed us to move quickly and collaboratively with the universities to address the growing need for quality student housing in DC. The Lanes at Union Market represents an exciting step forward in delivering well-located, modern housing that enhances the student experience.”

Direct transportations run between the universities and The Lanes at Union Market, providing a convenient commute for students residing in the building. Additionally, the first floor of the building will offer retail spaces, including a UPS store.

M&T RCC is actively pursuing nonrecourse bridge loan opportunities for multifamily projects nationally.