Capital One Secures $22M Loan for Suburban Atlanta Apartments

Capital One provided an initial $21 million funding with a $1 million earn-out to reimburse the company for investment expenses.

by Evelina Croitoru

River Trace Apartments
River Trace Apartments

AtlantaCapital One has announced the completion of a $21.8 million three-year floating-rate loan on behalf of Federal Capital Partners (FCP), a privately owned real estate company. The financing will facilitate the acquisition and upgrade of River Trace Apartments, an apartment community in Roswell, Ga. Capital One Senior Vice President Mike Antonelli led the team that originated the transaction.

The 312-unit, Class B asset is located at 1450 Raintree Way and features a private lake with a pool, a business center and a fitness area. The property offers close proximity to the Verizon Amphitheatre and the North Point Mall.

According to YardiMatrix data, back in 2016 the property was subject to a $15.4 loan held by Mutual of Omaha Bank. Also in 2016, the property was acquired by FCP at the purchase price of $29.5 million from Marquis Investments.

Capital One’s Commercial Real Estate Group has established a template for FCP through which the company funded 16 multifamily projects for FCP in the last two years. The loans are sized to existing cash flows, with additional proceeds made available once the company executes its improvement plans. In the case of River Trace Apartments, the initial funding was $20.7 million with a $1.1 million earn-out to reimburse the company for investment expenses. The deal marks the third Atlanta-area project that the company did in collaboration with FCP.

Image Courtesy of  Yardi Matrix