Carter Multifamily Lands $318M Portfolio Loan

JP Morgan Chase Bank provided the CMBS financing.

Windsor Park

Carter Multifamily, a Carter Funds company, has received a $318.5 million loan for the acquisition of six properties across Maryland, Virginia and Alabama. JLL Capital Markets arranged the floating-rate, non-recourse bridge loan provided by JPMorgan Chase Bank.

Carter acquired the assets totaling 1,494 units from three different sellers. According to Yardi Matrix data, the former owners are AIR Communities, PRP Real Estate Management and Tynes Development. The communities are expected to benefits from the persisting demand for workforce housing. 

The JLL Capital Markets team that arranged the financing on behalf of the borrower included Senior Managing Directors Melissa Marcolini Quinn and Lee Weaver.

The properties

AIR Communities sold four garden-style properties built in the mid-1980s. They are:  

  • Hunt Club, a 336-unit community in Gaithersburg, Md. The property at 404 Christopher Ave. encompasses 29 two- and three-story buildings across nearly 18 acres.
  • Windsor Park, a 220-unit property in Woodbridge, Va. Located at 3937 Penshurst Lane, the community encompasses 11 two- and three-story buildings across 16 acres.
  • Springwoods at Lake Ridge, a 180-unit property also in Woodbridge. The 15-acre property consists of nine two-and three-story buildings at 12395 Midsummer Lane
  • Stone Creek Club, a 240-unit asset in Germantown, Md. The community encompasses 12 two-and three-story buildings on 13.5 acres at 12840 Locbury Circle.  

PRP Real Estate Management traded Park at Kingsview Village, a 326-unit community in Germantown, Md. The 2000-built property encompasses 26 three-and four-story buildings on more than 16 acres. Located at 13414 Daventry Way, the community offers a mix of one and two-bedroom apartments. The asset last traded in 2016 for $70.4 million, Yardi Matrix data shows.

Tynes Development sold The Oaks of St. Clair, a 192-unit community in Circle Moody, Ala. Developed in 2002, the property encompasses eight three-story buildings on 9.6 acres at 5050 Oaks of St. Clair. The community offers one- and two-bedroom apartments.

Increasing property value

It is likely that Carter will implement a series of renovations to the recently acquired communities, some of which are nearly 40 years old. According to a prepared statement from Lee Weaver, Carter Multifamily has a track record of increasing assets’ value through capital improvement works.   

In September last year, Carter Multifamily pocketed $349 million from the sale of a multifamily portfolio consisting of 16 properties across southeastern states. The company built the portfolio throughout 2019. After implementing interior and exterior upgrades, the portfolio value rose by more than $100 million.   

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