is 97% occupied.
ALEXANDRIA, VA-An LLC called VNS Investments has acquired an apartment building here called Mallard Courts for $23 million. The company financed it through a Fannie Mae loan for $18.9 million, which was secured via Beech Street Capital.
The 10-year term loan was below 4% at full leverage, Jacob Katz of Meridian Capital tells GlobeSt.com. Katz, who originated the loan, also adds that it is structured with several years of interest-only financing.
“Spreads have tightened over the last several weeks and Fannie Mae is being very competitive for the right deals in the Mid-Atlantic,” he says. Another plus for the transaction: Meridian and Beech Street were able to close the loan in under 30 days.
Mallard Courts is a 180-unit apartment community that is 97% occupied. It was constructed in 1973 and has had recent capital expenditures made to it. The new owner plans to make significant upgrades to the units between now and 2015.
Beech Street has worked with this borrower before—it helped it secure refinancing for a property in Rockville, MD. According to Katz, it also owns properties in Sterling and McLean, VA.