Prudential Provides $115.8M for Mixed-Income D.C. Development

A 520-unit development in Northeast Washington, D.C., lands financing; HFF arranges refinancing for two communities in Minnesota and South Dakota; and Capital One Bank closes on a $24 million private placement revenue bond.
ArtPlace-SIZED-FOR-WEBSITE

Art Place at Fort Totten

Washington, D.C.—The Fort Totten neighborhood of Washington, D.C., is set to see 520 new rental units—121 of which are designated as affordable—thanks to $115.8 million in permanent financing from Prudential Mortgage Capital Co. The mixed-income and mixed-use development is being built by The Morris and Gwendolyn Cafritz Foundation. Prudential Financial’s $400 million impact investment portfolio made up $25 million of the permanent financing. The impact portfolio directs investments to companies, projects and funds that create positive social change.

Art Place at Fort Totten is the first phase of a three-phase development that will be located next to the Fort Totten Metro Station in Northeast Washington, D.C. The completed project will include a fitness center, restaurant, children’s museum and a community center for the arts.

“The scale and design of this property coupled with the longstanding commitment of the borrower to serving Washington, D.C., will make this a dynamic development for the Fort Totten community,” says Alex Viorst, a principal with Prudential Mortgage Capital Company’s affordable housing business. “When this property is completed, it will bring high quality market rate and affordable housing to the community, along with new commercial and retail opportunities for neighborhood residents.”

The building was designed by Shalom Baranes Associates, and will be built by Foulger-Pratt Contracting.

HFF arranges $20M to refinance two communities in Minnesota and South Dakota

Hainesway Apartments

Hainesway Apartments

Cottage Grove, Minn., & Rapid City, S.D.—HFF has arranged a combined $20 million refinancing for two apartment communities: Hinton Heights Rental Homes in Cottage Grove, Minn., and Hainesway Apartments in Rapid City, S.D. The borrower was Cottage Grove Investors and Hainesway Apartments LLC. The 10-year, fixed-rate loans were provided by a delegated Fannie Mae underwriter/servicer. The HFF team representing the borrower was led by associate director Brock Yaffe along with real estate analysts Kristian Lichtenfels and Matt Gangaware.

Hinton Heights Rental Homes

Hinton Heights

Hinton Heights is located at 7750 Hinton Ave. South in Cottage Grove, a suburb of Saint Paul, Minn. The 249-unit asset features townhome-style units and an amenity package including a indoor pool, fitness center, party room and dog park.

Hainesway is located at 1314 Atlas Street in Rapid City, S.D., about 25 minutes from Mount Rushmore National Memorial. Amenities include an indoor swimming pool, hot tub, sauna, fitness center, basketball court, volleyball court, dog park, party room and business center.

Capital One Bank closes on $24M private placement revenue bond

New York—Capital One Bank announced today that it served as placement agent and purchaser of a $24 million private placement taxable revenue bond to affiliates of Revera Inc., a provider of housing, care and services for seniors across the United States and Canada. The revenue bonds are secured by mortgages on seven assisted living facilities and one independent living campus in Oregon, and proceeds will be used to refinance the borrowers’ outstanding revenue bonds, finance new money capital improvement projects, repay intercompany capital improvement loans and fund a debt service reserve.

The borrowers are owned through various holding companies of Revera Inc., which operates over 500 retirement communities, long-term care homes, skilled nursing facilities, and home health branches in the United States and Canada. The company serves a diverse group of residents and families by offering integrated therapies that address the total well-being of each individual.

“Revera is an industry leader that sets a high standard for senior living,” says Imran Javaid, managing director, Commercial and Specialty Finance, Capital One Bank. “We are pleased to work with a high quality operator to devise a structure that meets Revera’s needs.”

“Capital One provided competitive fixed-rate pricing with numerous maturity and amortization options to fit the unique structure of the bond,” said Glen Chow, vice president of Treasury and Risk Management for Revera, Inc. “Their ability to be flexible in terms of structure in combination with certainty of execution further solidified the collaborative relationship we have with Capital One team.”

The fixed-rate loan has a five-year term, with a 20-year amortization schedule.

Capital One Bank’s Healthcare team partners with clients in the healthcare and long-term care industries by providing real estate loans, enterprise term loans and revolving lines of credit to address their capital needs. Capital One Bank’s Commercial and Specialty Finance Business serves clients through a team of more than 200 associates who have expertise in technology, healthcare, security and defense, asset based lending, rediscount finance, municipal finance and equipment leasing and finance. Capital One Bank’s Commercial Business leverages a relationship-based banking model that seamlessly delivers an array of products and services including loans and deposit accounts, treasury management services, merchant services, investment banking, international services and correspondent banking.