Carter Multifamily Refinances Portfolio for $302M

Oaks of St. Clair. Image courtesy of JLL Capital Markets

Seven months after acquiring six multifamily properties in Maryland, Virginia and Alabama, Carter Multifamily has refinanced the 1,494-unit, garden-style portfolio for a total of $302 million—$262 million in debt and $40 million in equity in deals arranged by JLL Capital Markets.

The JLL Capital Markets Central Florida Debt & Advisory team secured the seven-year, floating-rate loans through Freddie Mac Multifamily. The loans will be serviced by JLL Real Estate Capital LLC, a Freddie Mac Optigo lender. JLL also secured the equity through an unidentified institutional investor. The JLL team was led by Senior Managing Directors Melissa Marcolini Quinn and Lee Weaver.

Quinn said in a prepared statement that despite turbulent debt markets, they were able to refinance the portfolio with favorable senior financing from Freddie Mac. She said Freddie Mac was attracted to the deal because of the borrower’s strong track record and the portfolio’s contribution to Freddie Mac’s mission.

Weaver noted in prepared remarks that the favorable senior loan terms attracted a lot of interest from equity investors for the portfolio. JLL did not disclose the name of the equity investor.

Quinn and Weaver were part of the JLL team that secured financing in January when the firm acquired the portfolio in three separate deals with a $318.5 million floating-rate, non-recourse bridge loan provided by JPMorgan Chase Bank.

Property Details

The properties, described in January as providing much-needed workforce housing are:

• Park at Kingsview Village, 326 units, 13414 Daventry Way, Germantown, Md.
• Stonecreek Club, 240 units, 12840 Locbury Circle, Germantown
• Hunt Club, 336 units, 404 Christopher Ave., Gaithersburg, Md.
• Springwoods at Lake Ridge, 180 units, 12395 Midsummer Lane, Woodbridge, Va.
• Windsor Park, 220 units, 3937 Penshurst Lane, Woodbridge
• Oaks of St. Clair, 192 units, 5050 Oaks of St. Clair Circle, Moody, Ala.

The properties in Maryland and Virginia are suburbs of Washington, D.C., and provide residents access to employment opportunities in and surrounding the District. The Germantown and Gaithersburg properties are located in the northwestern suburbs along Interstate 270. The Woodbridge properties are situated in a Virginia suburb about 23 miles southern of downtown Washington, D.C.

PRP Real Estate Management was the seller of Park at Kingsview Village in January, while the remaining Maryland and Virginia assets were sold by AIR Properties, according to Yardi Matrix data. Tynes Development sold The Oaks of St. Clair in Alabama to Carter Multifamily, Yardi Matrix reported.

In April, Carter expanded its Alabama holdings with the purchase of a four-property, 876-unit portfolio in the Mobile, Ala., market for $121 million. The properties acquired were the 184-unit Arbor Gates, 228-unit Lenox Gates, 216-unit Regency Gates and 248-unit The Gates at Jubilee. The acquisition brought the firm’s assets under management in Alabama to 2,897 units.