TODAY'S DEALS: HFF Lands $71.1M Construction Loan for Arlington High Rise

Holliday Fenoglio Fowler lands contruction financing for a Virginia asset; ARA brokers the sale of a 192-unit community; and Beech Street funds a $13.6 million refinance for a local bank borrower.

The Place

Arlington, Va.—Holliday Fenoglio Fowler has arranged a $71.1 million non-recourse construction loan for The Place, a 257-unit Class A development in Arlington, Va. The firm secured financing for the 17-story project on behalf of Ashton Park Associates III LLC, a Shooshan Company affiliate, and landed the funds through a national bank.

“This loan is representative of the type of financing that is available for the best-in-class asset in a very strong submarket with sponsorship excellence,” says Walter Coker, managing director at HFF. “The loan was structured to be taken down by one senior lender with no syndication risk, and provided loan proceeds that allowed our client to maintain 100 percent equity ownership and maximum flexibility while borrowing at historically low interest rates.”

The Place is located at 4000 Wilson Blvd. in Arlington’s Rosslyn-Ballston Corridor. The planned LEED Silver property should see completion in 2013. The unit mix at the luxury property with include studio, one- and two-bedroom apartments. Amenities will include a concierge desk, fitness center, club room, private courtyard, movie screen and a rooftop pool. There will also be 8,500 square feet of ground-floor retail space.

ARA brokers sale of 192-unit community near Charlotte

One Norman Square

Cornelius, N.C.—ARA has completed the sale of One Norman Square, a 192-unit apartment community located in Cornelius, N.C., part of greater Charlotte. The asset was picked up by New Jersey-based The Raia Properties, a company with a 2,600-unit portfolio of Class A assets.

“One Norman Square represents an attractive discount-to-replacement-cost in one of Charlotte’s strongest growth markets,” says Blake Okland of ARA. “The property was well received by the market and new ownership is sure to benefit from the exciting growth prospect expected from the entire MSA.”

One Norman Square was built in 1992 and is currently 95 percent occupied. Amenities include a salt water pool, tennis courts, a fitness center, business center, gated on-site boat parking, and walking trails.

Beech Street funds $13.6M, sub-4%, refi for local bank borrower

Bethesda, Md.–Beech Street Capital LLC announced it has provided $13.6 million Fannie Mae DUS loans to refinance a four-property portfolio totaling 181 units in Edison, Montclair and Highland Park, N.J. Scott Assouline of Meridian Capital Group LLC, originated the transaction, which was financed by Beech Street Capital as part of its correspondent relationship with Meridian.

The sponsors were first-time Beech Street and Fannie Mae clients after working with local community banks for decades. Beech Street was able to demonstrate its expertise and knowledge in agency financing. The lender was able to secure a waiver for the 1 percent prepayment premium on each of the loans. Beech Street further increased savings for the borrower by achieving DUS structure and pricing for the primarily small loan portfolio with a sub-4 percent interest rate.

“The Beech Street team proved their ability to compete well with local banks and to work well with strong, family-run real estate organizations,” states Matt Texler, managing director at Meridian. “The transaction highlights Beech Street and Meridian Capital’s strong partnership in the New York Metro area.”The sponsors have been involved in real estate management and investment for over 50 years. The family owns and manages nearly 4,000 units in the New Jersey, Pennsylvania and New York markets.

Located in Essex and Middlesex Counties, the properties are in prime locations of Northern New Jersey, attracting residents for their suburban appeal and close proximity to New York City.

The fixed-rate loans have a seven-year term, 6.5 years of yield maintenance, and a 30-year amortization schedule payable on an actual/360 basis.

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