Capital Square Scores $225M Financing
- Nov 05, 2019
Capital Square has obtained $225.1 million in financing for five apartment communities across Virginia that it acquired this year. The company, a national investment sponsor that specializes in Section 1031 exchange transactions, secured Fannie Mae and bank financing for the properties. Walker & Dunlop’s Alexandra Huffman and Andrew Tapley led the team that arranged the debt package in concert with capital markets specialist Justin Nelson, who identified a bank lender.
The properties include four stabilized assets and one newly completed development offering a total of 1,621 units:
- 2000 West Creek (373 units) – 2000 Broad Branch Circle, Richmond
- Hickory Creek Apartments (294 units) – 2344 Hickory Creek Drive, Richmond
- Saltmeadow Bay Apartments (229 units) – 757 Saltmeadow Bay Drive, Virginia Beach
- Misty Ridge Apartments (409 units) – 1989 Delaware Drive, Woodbridge
- Bellemeade Farms Apartments (316 units) – 775 Gateway Drive SE, Leesburg
Capital Square acquired 2000 West Creek for $103 million from Bristol Development group last month. Built in 2018, the Class A community in Richmond’s popular West Creek neighborhood, changed hands for the equivalent of $276,139 per square foot. The community is the final stages of lease-up.
Virginia shopping spree
Capital Square also picked up Bellemeade Farms in February 2019 for $69.8 million from Bainbridge Cos. The property was built in 1989 and comprises 12 buildings. The company followed that up in April by purchasing Hickory Creek from McCann Realty Partners for $45.6 million, according to Yardi Matrix. The 19-building asset was completed in 1985, about 6 miles to the east of 2000 West Creek.
Capital Square notched two acquisitions in August, purchasing Saltmeadow Bay from Runnymede Corp. for $48.6 million and snapping up Misty Ridge from Castle Lanterra Properties for $80.5 million. Built in 2003, Saltmeadow Bay consists of four buildings within walking distance to Virginia Beach. Misty Ridge was built in 1989 and is located near the shopping, dining and entertainment options centered around Dale Boulevard.
Both Misty Ridge and Bellemeade Farms qualified for Fannie Mae’s Green Rewards program, which provided additional loan savings, according to a statement by Walker & Dunlop.