Maryland Apartments Change Hands
- Aug 05, 2019
Concord Park at Russett, an apartment community in the Russett neighborhood of Laurel, Md., has changed hands. The sale was made possible as a result of a $61.8 million Freddie Mac loan facilitated by the Multifamily Capital Markets team of Newmark Knight Frank.
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Located at 7903 Orion Circle, Concord Park at Russett is a 335-unit mid-rise elevator community built in 2005. The property consists of four- and five-story buildings featuring a variety of one-, two- and three-bedroom residences. Renovations have been undertaken at about half of units. Upgrades include the installation of stainless steel appliances, track lighting and hardwood floors. Among the highest-profile amenities at the community is a swimming pool with wading pool.
“The challenge was we were very close to being DSCR-constrained at the time of application,” Charlie Haggard, NKF co-director, told Multi-Housing News. “So if treasuries rose, we would either be forced to cut proceeds or reduce IO. While the borrower preferred not to rate lock early in the acquisition process, we were able to prep an Index Lock Agreement with Freddie so the sponsor could quickly lock in the index if it started to run. Fortunately, the index worked in our favor. And the borrower was able to hold off locking until just prior to closing and took advantage of the falling UST yield.”
Concord Park at Russett is situated in the far western portion of Anne Arundel County, mid-way between Washington, D.C. and Baltimore. Residents gain convenient access to Greenbelt and College Park, Md., as well as 295 and Interstate-95.
NKF Executive Managing Director Kevin Mignogna teamed with Haggard in furnishing a 10-year, full-term interest-only debt at 70 percent LTV through Freddie Mac’s Green Advantage program. The loan permitted NKF to gain favorable terms while also enabling Freddie Mac to finance additional units of sustainable housing, NKF said.
The purchaser was a repeat NKF/Freddie Mac sponsor.