TODAY’S DEALS: Federal Capital Partners Lands $81.5M Refi for D.C. Community

Federal Capital Partners secures an $80.5M refinancing for a Washington, D.C., community; Kennedy Wilson, LeFrak JV closes $46.4M in refinancing for two multifamily properties; and NorthMarq Capital arranges a construction loan and tax credit bridge facility.

The Allegro Apartments

Washington, D.C.—Federal Capital Partners has secured an $80.5 million refinancing for the Allegro Apartments, a 297-unit property located in the Columbia Heights submarket in Washington, D.C. The first trust loan was provided by Aareal Capital Corporation’s New York office. Holliday Fenoglio Fowler represented FCP in the transaction. This new five-year loan replaces the initial financing secured by FCP as part of a foreclosure transaction in 2009.

“These refinancing proceeds provided FCP with a significant realization for its Fund I investors,” says Steve Walsh, senior vice president at FCP. “The Allegro is a well-constructed, well-conceived luxury apartment community in one of D.C.’s hottest urban submarkets. The interest we received for the refinancing transaction reflects the quality of the investment and its strong market presence.”

FCP has invested more than $500 million in transactions through the Mid-Atlantic region over the last 16 months. The firm has acquired or funded nearly $1 billion in residential, commercial and retail real estate over the last two years with its FCP Fund I L.P.

Community amenities at The Allegro include a lounge with Wi-Fi and a fireplace, two courtyards, a fitness center, party room with wet bar and pool table, media lounge, Internet café, and street-level retail.

Kennedy Wilson, LeFrak JV closes $56.4M refinance for two communities

Indigo Springs

San Jose, Calif.—A joint venture of Kennedy Wilson and The LeFrak Organization has refinanced two of its multifamily properties with a new debt in the amount of $56.4 million at an average interest rate of 4.6 percent.

Financing in the amount of $24.1 million was completed for Indigo Springs, a 278-unit community in Kent, Wash., with terms that include a 10-year fixed rate of 4.96 percent. The joint venture also completed $32.3 million of new debt on The Grove, a 331-unit community in San Jose, Calif., with terms including a seven-year fixed rate of 4.34 percent.

“These assets are located in our target markets, where we are seeing improved operating fundamentals and solid growth rents,” says Robert Hart, president of Kennedy Wilson Multifamily Management Group. “We were very pleased to be in a position to take advantage of the low interest rate environments and obtain very attractive Fannie Mae fixed-rate financing, which will provide Kennedy Wilson and its investors with a double-digit cash-on-cash return of these assets.”

NorthMarq Capital arranges construction loan and tax credit bridge facility

Baltimore–Bill Libercci, vice president, and Nancy Ferrell, senior vice president and managing director, both of NorthMarq Capital’s Baltimore Regional office, arranged a construction loan and tax credit bridge facility for Gunther Square, located at 1211 South Conkling Street in Baltimore.

The property will contain 162 multifamily units plus retail space. Financing was arranged for the borrower, a joint venture of Obrecht Commercial Real Estate, Kinsley Properties and Focus Development, by NorthMarq through its relationship with RBS Citizens Bank. According to Libercci, this financing allowed the borrower to renovate the Gunther Main Brewery into a LEED-certified multifamily community using historic tax credits.

Libercci says, “The redevelopment of the Gunther Main Brewery Building, which has been vacant and deteriorating for 37 years, represents the latest phase in the renaissance of Brewers Hill. It took the talented development team of Wells Obrecht, Kinsley Properties and Focus Development, together with a flexible lender in RBS Citizens Bank, to pull off this very complicated historic renovation. This is a great project for Baltimore.”

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