TODAY’S DEALS: JV Lands Construction Financing for Virginia Project
A three-party joint venture lands financing for a Class A development in Virginia; Raintree Partners buys a California asset for $60 million; and GFI sells a Brooklyn multifamily property for 10 time the rent roll.
Alexandria, Va.—A joint venture comprising Woodfield Investments, Arsenal Real Estate Partners and The Davis Companies have landed construction financing and joint venture equity for the development of Bell Del Ray—a 276-unit Class A asset in Alexandria, Va. Holliday Fenoglio Fowler arranged the debt, which was secured through Sovereign Bank, while the equity was provided by Bell Partners Fund IV.
“Location and market-proven sponsorship are vitally important in capitalizing development sites today, and the market clearly responded to the strong examples of these elements at Bell Del Ray,” says Walter Coker, managing director at HFF.
The project is located in the Potomac Yard Project—a mixed-use community that, when complete, will include more than four million square feet of office space, 1.1 million square feet of retail and dining, 3,200 residential units and a 300-room hotel.
Amenities at Bell Del Ray will include a courtyard swimming pool, outdoor fireplaces, a fitness center and a club room with a gaming/theater room.
Raintree Partners completes $60M California buy
Ventura ColonyVentura, Calif.—Raintree Partners has completed its purchase of Archstone Ventura Colony, a 272-unit community located in Ventura, Calif. The sales price was $60 million, which equates to $220,680 per unit. While the acquisition represents Raintree’s entry into Ventura County, the firm has a California portfolio made up of 16 assets and over 2,300 units. Institutional Property Advisors worked on the sale. Financing for the acquisition was provided by Fannie Mae and arranged by Beech Street Capital.
“We were particularly attracted to this investment opportunity, as it is the best-located apartment property in the city of Ventura,” says Jeff Allen, chief executive officer at Raintree. “It is within walking distance of high-end retail, a block from the entrance to the 101 Freeway (Highway 101), and less than a mile from the major employment centers in Ventura. In addition, it has high visibility and good drive by traffic along Telegraph Road.”
Built in 1998, the community has two swimming pools and spas, a fitness center, tennis court, screening room and a business center. Raintree plans to upgrade kitchens and baths and install washers and dryers to modernize unit interiors.
GFI sells Brooklyn multifamily for 10 times rent roll
New York—GFI Realty Services Inc. announced the sale of 1404 Pacific Street located in the Crown Heights section of Brooklyn, for $965,000, translating to 10 times the rent roll. The four-story walk-up apartment building consists of eight residential units totaling approximately 13,124 square feet. The apartments in the building are four and five bedroom units averaging 1,500 to 1,600 square feet. Shlomo Antebi, a director at GFI Realty Services Inc., represented the seller, New World Faculty Group. Shawn Sadaghati, an associate also at GFI Realty Services Inc., represented the buyer, One Pacific LLC.
“The low average rents and the two vacant units made financing very difficult; therefore, it had to be an all cash deal,” said Shlomo Antebi.
“The buyers were very excited about the potential for 1404 Pacific Street—a building that is already in great condition,” said Shawn Sadaghati. “They have plans for major capital improvements and will be keeping it as a long-term investment property in their portfolio.”
The multifamily apartment building was built circa 1910 and is located near the 2,3,4 and 5 subway trains. It is also in close proximity to the Brooklyn Botanic Gardens and Prospect Park.
