JV Lands $60M Financing for Virginia Development
The capital will help expand housing for military families in the area.
A joint venture between Madison International Realty and The Accend Cos. has obtained $59.7 million in financing for Ellipse Urban Apartments, a luxury multifamily community in Hampton, Va. JLL Capital Markets secured the floating rate loan through funds managed by affiliates of Fortress Investment Group.
Situated at 2001 Commerce Drive, Ellipse Urban Apartments was built in 2021. It is a 287-unit Class A community featuring studios, one-, two- and three-bedroom units.
Features and finishes of the residences include open-concept floor plans, floor-to-ceiling windows, granite countertops, designer contemporary LED lighting, in-unit washer-dryers, walk-in closets and wood plank flooring. Among the common-area amenities are an outdoor saltwater pool with kitchen and gas grills, 24-hour clubhouse, fitness studio, business center, pet spa, game room and EV charging stations.
The financing will enable the ownership group to expand the inventory of its Home 4 Now furnished units with flexible lease terms, which command significant rent premiums. Expansion will take those from 11 to 25 percent of total units.
Convenient access
Ellipse Urban Apartments provides convenient access to I-64, I-664 and Rt. 60. The property is also only 15 minutes from the Hampton Roads Bridge-Tunnel. The location is proximate to well-known shopping destinations, as well as dining and entertainment venues that include Peninsula Town Center and the Hampton Coliseum.
Given the property’s proximity to Langley Air Force Base and Naval Station Norfolk, Ellipse Urban Apartments has proven particularly appealing to military personnel. About 46 percent of current residents serve in the military professions.
Hampton also benefits from a robust and diverse economy driven by aerospace, defense facilities, higher education institutions and major medical centers. Since 2019, the Hampton multifamily market has witnessed substantial 5.5 percent year-over-year rent growth. Despite new supply, it has maintained consistent vacancy rates.
JLL Capital Market’s Debt Advisory team representing the borrower was directed by Steven Klein and Jim Cadranell, senior managing directors, as well as Senior Director Reina Abboud and Associate John Cumming.
Earlier this year, multifamily giant Greystar broke ground on Old Ivy Residences, a major development featuring apartments and build-to-rent homes in Charlottesville, Va.
