Berkadia Secures $47M Refi for DC Property

The proceeds were used to refinance existing debt and to pay off an 8 percent pre-payment penalty. The loan was secured through the HUD 223(a)(7) Loan Program.

By Tudor Scolca

Capitol Hill Tower

Capitol Hill Tower

Berkadia facilitated the financing of Capitol Hill Tower, a 344-unit cooperative property in Washington, D.C.’s Navy Yard neighborhood. The apartment community is located at 1000 S.E. New Jersey Ave. Access to Capitol Hill, downtown Washington and the Navy Yard neighborhood is facilitated by the Navy Yard Metro station, only minutes from the property, as well as M S.E. and S Capitol S.W. streets. interstates 695 and 395 are also nearby, providing transit within the D.C. metro area.

Advantageous financing

Senior Director Joe DeGiorgi secured the $46.9 million on behalf of the borrower, Capitol Hill Tower Housing Cooperative Inc. The amount refinanced existing debt and paid off an eight percent pre-payment penalty. The permanent refinancing loan features a fixed 3.9 percent interest rate with a 40-year fully amortizing loan term. Securing it through the HUD 223(a)(7) Loan Program allowed the borrower to take advantage of HUD’s reduced Green MIP Rate, made possible by achieving EPA’s Energy Star Certification. Berkadia’s regional office recently secured another financing loan for three Philadelphia properties.

Berkadia was thrilled to execute this transaction for such a valued client. We were able to provide the Borrower with an Early Rate-Lock, which removed the interest rate risk through the HUD processing time. As a result, we have helped provide over $220,000 in annual Debt Service savings to our Borrower,” said DeGiorgi, in a prepared statement.

Image via Google Street View

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