Security Properties Finds TOD Value Along D.C.’s Silver Line Expansion
- Apr 27, 2015
Ashburn, Va.—Security Properties has completed its first acquisition in the Northern Virginia/Washington D.C. area with the purchase of The Grove at Flynn’s Crossing. A location three blocks from the Metrorail’s Silver Line Phase 2 expansion certainly played heavily into the transaction. The 168-unit community will be served by the Route 772 Station—the western terminus of the line—which has an estimated completion date in 2018.
Security Properties dropped $31 million on the acquisition, according to data from Yardi Matrix. Aspen Square Management was the seller. Aspen picked up the asset back in December 2012 for $18.1 million. The asset features a mix of one, two and three-bedroom apartments. Amenities include a fitness center, clubhouse, pool and playground. In typical Security Properties fashion, the new owner will invest capital for improvements to both the interior and exterior of the property.
“This was a strategic acquisition for the company, as we plan this to be the first of many acquisitions in the Northern Virginia/Washington DC market,” says Bryon Gongaware, managing director of affordable housing for Security Properties.
Joint venture kicks off apartment redevelopment play in D.C.
Washington, D.C.—Federal City Property Investors and CBD have formed a joint venture to acquire and reposition The Envoy Apartments, a nine-story, 113-unit apartment asset located at 2144 California Street, NW in Washington, D.C.’s Kalorama Heights neighborhood. HFF arranged the joint venture equity and debt financing (Union Bank) for the project.
The 1958-built property will undergo a renovation of both individual units and common areas. The apartment sits four blocks north of Dupont Circle and three blocks east of Masschusetts Avenue’s Embassy Row.
Grandbridge arranges 3 Nevada multifamily loans
Los Angeles— Grandbridge Real Estate Capital recently closed three separate loans totaling $10.5 million secured by three multifamily communities located in Las Vegas. The loans were originated by Los Angeles-based Shelley Magoffin and Max Sauerman.
The three loans were arranged on behalf of a Southern California-based real estate investor and existing client of Grandbridge Real Estate Capital. Each property was developed by the borrower and occupancy for each complex was in excess of 95 percent. The loans were funded by one of Grandbridge’s life insurance company correspondents, featured a 15-year fixed rate, 25-year amortization, and closed with an interest rate below 3.75 percent. The nonrecourse loans also allowed for step-down prepayment flexibility after year five. In addition, Grandbridge worked successfully with the borrower to meet their objectives which included locking in a favorable interest rate at application to offset the costs of the prepayment penalty (the loans were not due for a year or two) and closing and processing each loan simultaneously.