The Marcus & Millichap team has another deal in the pipeline supported with funds from this new program, according to Kunitz and Weber: an approximate 300-unit apartment building in Falls Church, VA. The transaction is valued at $32 million and is expected to close in mid-November.
The program is meant to help property owners that already have VHDA debt on the buildings to sell or refinance--and still stay affordable. Without it, Kunitz explains, these companies would have been locked out of transactions or forced to let go of the affordable component. The terms for the Foulger-Pratt deal included a 90% loan-to-cost financing, 15-year term, debt coverage at a 1:1 ratio and a 6.2% rate. The rate, though, will vary from deal to deal since it is tax-exempt bond financed, Kunitz says. The deal took 47 days to close, after receiving six qualified bids, he adds. Marcus & Millichap expects to close other Virginia transactions with the program. VHDA did not return a call to GlobeSt.com in time for publication.
In general, Weber reports, Marcus & Millichap is seeing more activity in multifamily--a recent and welcome trend for the area. The company just brokered the sale of a general partnership interest in Gardens of Traville in Rockville, MD, a $26-million deal, he says. "Within the next three to six months I expect we will have closed nearly $100 million in multifamily deals."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
