Marathon Development Lands $56M Loan for Virginia Project

The HUD 221(d)(4) financing will fund construction of 273 units in downtown Norfolk.

Image by Hansuan_Fabregas via Pixabay.com

Marathon Development Group has secured $56.2 million in construction financing for the development of Gravity on 400, a multifamily project in Norfolk, Va. Berkadia arranged the 40-year HUD 221(d)(4) loan on behalf of the borrower. The note bears a 2.68 percent interest rate and an 85 percent loan-to-cost ratio.

The 273-unit community will have studios and one- to three-bedroom floorplans. The six-story property’s amenities will include a fitness center, a club room and a courtyard with a pool and grilling stations. Garage parking will be available on the first floor.

Located at 400 Waterside Drive, the development site is downtown, just north of the Elizabeth River. Starwood Capital Group’s 1.1 million-square-foot MacArthur Center mall and the Hampton Roads Naval Museum are both within 1 mile of the parcel.

Director Amy Gay of Berkadia Richmond led the team that secured the loan. Earlier in November, Gay headed another team which sourced $35.4 million in financing for the 135-unit second phase of a property upstate in the Shenandoah Valley.

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