KeyBank Provides $95M Fannie Mae Loan to ForestCity Enterprises
- May 30, 2012
Bethesda, Md.‑KeyBank Real Estate Capital recently closed on $95 million in Fannie Mae financing with ForestCity Enterprises Inc. on a 549-unit luxury high-rise apartment community located in Bethesda, Md. Key originated the loan through its Fannie Mae DUS platform.
The complex transaction involved an early payoff of the first-lien mortgage attributed to a Fannie Mae Bond Credit Enhancement, as well as the refinance of two supplemental loans. The financing successfully closed within a 60-day underwriting timeframe.
Twenty percent of units at The Grand are dedicated to providing affordable housing (Low Income Housing Tax Credit). Five years of interest-only was obtained on the 10-year loan term.
Founded in 1920 and publicly traded since 1960, ForestCity Enterprises Inc. is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate properties in 27 states and the District of Columbia. The company’s operating portfolio contains 33,614 units in 116 properties in which Forest City has an ownership interest.
Fourteen-story luxury apartment breaks ground in D.C.
Washington, D.C.—A joint venture between Quadrangle Development and The Wilkes Company has broken ground on 440 K, a 234-unit, 14-story apartment building located at the Mount Vernon Place master-planned development. The team’s fifth project at the site is scheduled for completion in the fourth quarter of 2013. 440 K will also bring 9,000 square feet of ground floor retail to Mount Vernon Place, which at 2 million square feet is the largest mixed-use community in Washington, D.C.
“440 K is designed to meet the demands of District residents who place great value on lifestyle, outstanding service, accessibility, sustainability and design excellence,” says Christopher Gladstone, president of Quadrangle Development Corp. “This beautiful Davis Carter Scott designed building will make an elegant architectural statement on Mount Vernon Triangle’s ‘Main Street’ and will place its residents at the heart of the thriving Mount Vernon Triangle neighborhood.”
Community amenities at the luxury asset include bicycle storage, a fitness center, second floor garden with an outdoor fireplace and water feature, and a rooftop terrace with swimming pools and a lounge area.
SBV Communities buys a community in Austin
Austin—SBV Communities has completed its purchase of Summer Wind Apartments, a 156-unit community located in Austin. This marked the ninth multifamily in Texas for the Kansas City-based real estate division of Spectrum Business Ventures Inc.
“We couldn’t be happier to add Summer Wind to our portfolio,” says Chris Thompson, the director of multifamily acquisitions at SBV. “Austin is such a great place and if any city its size has come through the challenges of the past few years better, I’d like to see it. Summer Wind is one of those opportunities to quickly add and derive value from a property that has inherent potential and historical performance in an environment that’s ready for what’s next.”
Austin, according to SBV, is one of the top markets in the country for rent growth, thanks in part to a 150,000 person employment base at employers like Dell, IBM and Samsung—companies with offices within a 5-mile radius. This is supported by the fact that Austin was ranked the seventh best apartment market in the country by Marcus & Millichap for 2012. The service firm expects the employment base to broaden by 30,000 jobs in 2012. This should help bring rents up by 4.1 percent to $927 per month as vacancy drops to an expected 4.3 percent.