Shakespeare Theatre Company & Harman Center for the Arts
Shakespeare Theatre Company (STC) needed facilities near its Lansburgh Theatre to embrace new audiences, provide a home for local performing arts groups, and expand its education programming.
JM Zell was instrumental in putting together two parties with compatible interests and real estate needs in a unique co-development venture. JM Zell worked closely with the boards of each to facilitate decision-making that kept the projects on time and within budget.
We assembled the design teams, orchestrated design reviews and approvals, conducted competitive bidding, and oversaw construction. JM Zell coordinated quarterly filing of reports for compliance with FirstSource and LSDBE District of Columbia programs.
JM Zell also assisted with the complex underwriting strategy which required sourcing commitments for separate, non-cross-collateralized loans to two entities for a single project. Bank of America delivered the needed $110 million in financing. STC’s collateral was a combination of a District grant, a gift from the Harman Family Foundation and pledge donations.
A line of credit bridged the funding gap between pledge payments and construction requisitions. The strength of STC’s donors and its co-development relationship allowed STC to secure financing. A second pledge line of credit funded theatre fit-out. After construction completion, JM Zell headed the sale of transfer of development rights generated by the STC’s arts use and the disposition of the historic OBA building, generating additional income for STC.