Berkadia Secures Financing for Virginia Properties

In two separate transactions, loans were provided for renovations of two Hampton Roads assets and for the construction of a Chester community.
Ashbrook Apartments. Image courtesy of Berkadia

In two separate transactions, the Richmond, Va., office of Berkadia has secured a total of $67 million in financing for three apartment communities in Virginia.

In one transaction, Berkadia arranged $39 million in combined financing for two garden-style properties, Stonebridge Apartments and Ashbrook Apartments, in Hampton Roads. The 35-year, fully-amortizing 223(F) cash-out loans offer fixed-interest rates of 3.2 percent and 2.9 percent at an 80 percent loan-to-value ratio, and a reduced MP of 0.3 percent based on their Green Energy Efficient qualifications. The loans were originated through HUD by David Blake and Steve Murden, senior managing director and senior director respectively of the Richmond office, on behalf of borrower 140 Associates LLC.

Ashbrook Apartments in Virginia Beach and Stonebridge Apartments in Chesapeake both feature one- through three-bedroom floorplans and offer in-unit washer-dryers. A 24-hour fitness center is among leading amenities of each apartment community. The financing went to support upgrades to each property, and at Stonebridge new units as well.

Second phase

In the other transaction, Berkadia obtained $27.7 million in construction financing for the second phase of The Jane at Moore’s Lake, slated for construction in Chester, Va. The 221(d)(4) 40-year construction loan bears a 3.0 percent interest rate and 85 percent loan-to-cost ratio.

The construction loan was originated by Amy Gay, director of Berkadia’s Richmond office, through HUD on behalf of Emerson Construction Group Inc., the borrower. Last week, Berkadia brokered the sale of an apartment community in Biloxi, Miss.

The Jane at Moore’s Lake features one-, two- and three-bedroom apartments offering granite countertops, stainless steel appliances, custom cabinetry, walk-in closets and in-unit washer-dryers. A resident clubhouse represents one of the common-area amenities.

The second phase will feature 185 apartments, a slightly smaller number than the 200-unit first phase offered. The apartment community will be constructed on Moore’s Lake Road. That thoroughfare gives residents quick and easy access to I-95. Also readily accessible by future renters are the retail and dining venues along Jefferson Davis Hwy.

John Tyler Community College and Virginia State University are institutions of higher learning within 18 minutes of the property. Among recreational opportunities in the area are Gayne Park, R. Garland Dodd Park at Point of Rocks, Bensley Park, Harrowgate Park, Pocahontas State Park, Ironbridge Sports Park and Ashton Winery.

The first phase of The Jane at Moore’s Lake benefited from swift lease up, confirming the Chester area is a strong Chesterfield County submarket, Berkadia said in a statement. For that reason, launching construction of the second phase made good business sense.