Capital One Bank Provides $277M Construction Loan for Brooklyn Waterfront Apartments

Capital One Bank announced it completed the syndication of a $277 million construction loan for a ground up development; ARA brokers Pauls Corp.'s sale of 21 Fitzsimons; and Ross taps Federal Capital Partners to recapitalize 2,044 units in Washington, D.C.

New York–Capital One Bank announced today that it successfully completed the syndication of a $277 million construction loan for the ground up development of the final phase of the Edge development, 2 North 6th Place, a 40-story, 554-unit market rate/luxury apartment building on the East River in Williamsburg, Brooklyn. The developer is Douglaston Development, and AIG Global Real Estate Investment Corp. and MacFarlane Partners Investment Management are equity investors in the development.

Capital One is the Administrative Agent and Sole Lead Arranger for the loan, including a full underwrite and syndication. The loan has a four-year term, with three options for one-year extensions. The syndication was oversubscribed, and participating lenders include TD Bank, Santander Bank, RBS Citizens, Landesbank Baden-Wurttemberg, Mercantile Commerce Bank and Israel Discount Bank.

“Capital One Bank’s skilled and dedicated team provided us with strategic financing options that we needed to complete this deal on a timely basis,” says Jeffrey E. Levine, chairman of Levine Builders. “Securing the construction financing for 2 North 6th Place was an important step in realizing the full potential of the larger Edge project.”

North 6th Place is the final stage of the mixed-use development called for in the Williamsburg Edge Master Plan. The Edge Phase I, completed in 2009, is composed of 565 residential condominiums, 347 affordable and market rental apartments, a parking facility and a 60,000 square-foot retail condo. Located next to Phase I, 2 North 6th Place will have unobstructed waterfront views of the East River and the Manhattan skyline. Major amenities will include a 173-space parking facility, extensive fitness and recreational amenities, an expansive ninth-floor terrace with an indoor/outdoor pool overlooking the East River, 35,000 square feet of open space, public piers, a public esplanade and a ferry landing.

“Capital One Bank is pleased to support this project, which reflects the growing interest in the Williamsburg waterfront,” says Ben Stacks, Greater New York Market manager, Capital One Bank Commercial Real Estate. “The developers have already demonstrated their understanding of the optimal mix of units and amenities needed for success in the area.”

Pauls Corp. Sells 600-Unit Apartment in Denver Metro

Denver - 21 FitzsimonsAurora, Colo.—The Pauls Corporation has sold 21 Fitzsimons, a 600-unit community located in Aurora, Colo., to a local buyer for an undisclosed price. ARA brokered the transaction, with principals Doug Andrews, Jeff Hawks, Terrance Hunt and Shane Ozment representing the seller.

“21 Fitzsimons is located in the epicenter of the largest medical development in the United States,” Hunt says. “The Fitzsimons Life Science District continues to add jobs daily with one of the biggest bumps in employment coming with the completion of the new VA Hospital in early 2015. At 600 units, 21 Fitzsimons will control the majority of the rental market in the area due to the limited ability to add additional apartment communities in the immediate vicinity.”

Phase I of the property was completed in 2008 with 240 units plus six ground-level retail suites. Phase II was completed in 2012 with 187 units. Phase III was just completed with 173 units. Amenity highlights include a fitness center, yoga studio, swimming pool, a spin studio, outdoor fireplace lounge, an outdoor kitchen, a game room with billiards, garage parking, electric car charging stations and parking.

Ross taps Federal Capital Partners to recapitalize 2,044 units in Washington, D.C.

Washington, D.C.—ROSS Cos. is partnering with Federal Capital Partners to recapitalize six Ross apartment communities that total 2,044 units in the Washington, D.C., metro area. Financing is being provided by Wells Fargo and Fannie Mae. Under transaction terms, ROSS will retain an ownership interest and will continue managing the assets.

“We turned to FCP because of the synergies of operational and financial skills we both bring to the table,” says Scott Ross, president of ROSS Development & Investment and ROSS Renovation & Construction. “Our combined local knowledge and valuable community relationships make this a perfect partnership for us and ensure this venture’s success.”

The recapitalization value of this portfolio, which includes a high-rise community in Northern Virginia and five garden-style communities in Maryland, is more than $200 million, making this the largest apartment portfolio transaction in the Washington, D.C., area in 2014.

“Our Company is dedicated to creating a quality living experience for our residents and value for our partners,” adds David Miskovich, COO at ROSS. “This partnership will enable us to enhance resident satisfaction, maximize financial performance, and create the groundwork for future opportunities between our organizations.”