Northpoint Realty Partners and Persimmon Capital Partners has received $40 million in structured equity and debt financing to recapitalize The Mark Apartments, a 227-unit community in Alexandria, Va.
Walker & Dunlop’s structured finance team facilitated the deal.
“The redevelopment is appealing because it represents a seamless reuse of an outdated building in order to meet the rapid rise in demand for housing in the submarket,” Jamie Butler, Walker & Dunlop managing director, told MHN. “A wide range of lenders were attracted to the opportunity because of the central location, strong submarket fundamentals and the quality of construction—all of which have contributed to the strong leasing momentum of the project.”
The capital solution replaced the existing construction debt with a long-term capital stack, including fixed-rate senior debt from Freddie Mac and joint venture equity from RSE Capital Partners. The money will be used to transform an outdated hotel into a modern multifamily community.
“Walker & Dunlop did a fantastic job of understanding our needs and providing us with the most flexible options that allowed us to capitalize on our long-term business plan,” said Tim Riordan, partner of Northpoint Realty Partners. “We continue to see Jamie Butler and the rest of the Walker & Dunlop team as a vital part of our future deal process and will continue to use their services for future financings.”
The Mark Apartments features units ranging from studios to three-bedrooms, and includes all-new interiors and top-of-the-line appliances.
The property offers a massive outdoor pool and patio, state-of-the-art entertainment room with full chef-grade kitchen, modern fitness center, yoga studio, private dog park and large landscaped surroundings.
“Our clients have shown tremendous foresight, skill and dedication in successfully completing the intricate conversion of an obsolete hotel into an innovative apartment building,” Butler said. “The result is a property that squarely meets the overwhelming demand for housing in the submarket.”
Located at 100 S. Reynolds St., the property is 15 minutes from downtown Washington, D.C., and it is close to numerous retail and entertainment destinations, as well as to major employers throughout the region. It’s also served by the Van Dorn Metro Station and close to both interstates 395 and 495.
“The surrounding area is appealing due to a strong base of large employment drivers nearby, diverse retail options, access to the Metro and other forms of public transportation and proximity to downtown Washington, D.C.,” Butler said.
Earlier in June, Walker & Dunlop structured $81.8 million in bridge financing for the acquisition and repositioning of two Garland, Texas, garden-style multifamily properties.