Berkadia Facilitates $52M Loan for VA Luxury Project
- Jan 12, 2018
Berkadia has facilitated construction financing for Allure at Jefferson, an upcoming luxury apartment community in Fredericksburg, Va. The $52 million loan was originated through Berkadia’s HUD program on behalf of The Breeden Co., and features a 3.69 percent fixed interest rate and an 85 percent loan-to-cost ratio. The total investment estimate is at $85.5 million.
Allure at Jefferson will be situated along Jefferson Davis Highway and will comprise 450 units in a mix of one-, two- and three-bedroom floor plans. In the first phase, 338 units will be made available in the 14 three- and four-story buildings. A second phase will consist in the addition of 112 units, situated on an adjacent site. Planned amenities of the community include a picnic pavilion, cabanas with fireplaces, a dog park, swimming pool and a media center.
Dynamic market growth
Residents of the apartment community will have immediate access to downtown Fredericksburg, Washington, D.C. and Richmond via Jefferson Davis Highway and Interstate 95. Both the D.C. and the Richmond metros currently feature a large development pipeline, with almost 20,000 units in Richmond alone. Despite some overbuilding concerns in the area, The Breeden Co. is confident of the success of this project.
“The Fredericksburg and greater Mid-Atlantic market has been experiencing dynamic growth to close the year. It was a pleasure to help a longtime client expand their geographic footprint into such a thriving area,” said David Blake, senior managing director at Berkadia, in a prepared statement.
The Breeden Co. broke ground on Allure at Jefferson last month, and the first units are slated to come online in fall this year.
Image courtesy of The Breeden Co.