Lerner Refinances Affordable Housing in Suburban DC
The company, which has owned the property since 1993, received $34.5 million for Springs at Reston, a 362-unit community in Reston, Va.
By D.C. Stribling, Contributing Editor
Lerner Enterprises has obtained refinancing for Springs at Reston, a 362-unit apartment community in Reston, Va., a Washington suburb. The refi totals $34.5 million and is in the form of a Fannie Mae fixed-rate loan.
All the property’s units are affordable for those making 80 percent or less of the area’s average income. Built in 1972, Springs at Reston consists of 27 three- and four-story garden apartments, with a playground, picnic area and laundry facilities. Units have patios or balconies as well as fully equipped kitchens.
Lerner has owned Springs at Reston since 1993. With interest rates rising, the company opted to pay the prepayment penalty on its existing loan and refinance at current relatively low rates for 15 years. The loan has 10 years of interest-only payments.
Inside the deal
Capital One facilitated the deal. Senior vice presidents Joel Willard and Michael Antonelli originated the transaction.
“The loan supports Fannie Mae’s mission of providing affordable, workforce housing, which is critical in an area like Northern Virginia,” Willard said. “At the same time, it enables Lerner to lock in a longer-term loan at a competitive rate.”
Lerner is one of the largest real estate developers in the Washington, D.C., metro area. The company has developed 20 million square feet of commercial and retail space, constructed 22,000 private homes and built more than 7,000 apartments.
