Erkiletian Development Co. has received a $141.8 million bridge loan for the recently completed The Sur luxury community in Arlington, Va. The 360-unit property broke ground in the beginning of 2018, when it also received $87.5 million in construction financing from U.S. Bank, Yardi Matrix data shows.
KKR provided the three-year, non-recourse, interest-only loan with extension options, while Phillips Realty Capital represented the owner. Proceeds will recapitalize the construction capital stack and will cover additional lease-up expenses.
The property is located at 3400 Potomac Ave., on a 1.7-acre site near Ronald Reagan Washington National Airport and the Potomac River, while the new Amazon Headquarters is within walking distance. The property is part of the 40-acre National Gateway mixed‐use development at Potomac Yard.
Rising 12 stories, The Sur includes studio, one-, two- and three-bedroom apartments, as well as 16,503 square feet of retail. Community amenities stretch over 25,000 square feet and include a park, firepits, a fitness and wellness center, as well as a conference center.
Phillips Realty’s team included Managing Directors Adam Bieber and Malcolm Shaw, as well as Principal Bill Wrench.
Earlier this year, Erkiletian received refinancing for another community in Virginia. Berkadia secured the $50.6 million loan for The Asher, a 206-unit community in Alexandria, Va.