TIAA-CREF Obtains $92M Loan to Buy DC Apartments
MassCourt East End, a 371-unit apartment property in the Mount Vernon Triangle neighborhood of Washington, D.C., has obtained $92.6 million in acquisition financing. Currently the property is 96 percent leased.
By Dees Stribling, Contributing Editor
Washington, D.C.—MassCourt East End, a 371-unit apartment property in the Mount Vernon Triangle neighborhood of Washington, D.C., has obtained $92.6 million in acquisition financing. Currently the property is 96 percent leased.
The borrower, pension giant TIAA-CREF, got a 2.88 percent, fixed-rate loan through M&T Realty Capital Corp. (Fannie Mae). HFF represented TIAA-CREF in the deal, led by senior managing director Kevin MacKenzie and managing director Cary Abod.
Completed in 2004, the property has studio, one- and two-bedroom units averaging 836 square feet each. Residents have access to a rooftop lounge with cabanas, yoga and aerobics studio, fitness center, clubroom, and rooftop pool and hot tub.
The property also features two ground-floor retail tenants, Spring-Glo Dry Cleaning and the Carving Room. An on-site parking garage provides parking for 309 vehicles.
Investors have shown a keen interest in metro DC apartment properties in recent years, as befitting its relatively strong economy but low pace of development. According to investment specialist Marcus & Millichap, metro-wide D.C. apartment vacancies will be about 3.9 percent by the end of this quarter, compared with 4.2 percent a year ago. Rents are still rising, too—asking rents will increase 4 percent this year, and effective rents will be up 4.7 percent.