2400 Pennsylvania is a 102-unit apartment building on Washington Circle. The sponsorship and location--between George Washington University and Georgetown University--made the deal particularly appealing to lenders, Mudd tells GlobeSt.com.
The loan was a refinancing for the building, valued between $13 million to $14 million. The owners, local individual investors, have had it in their possession for 10 years. Prudential used Fannie Mae money to provide the financing, Mudd says.
The transaction illustrates how competitive the multifamily market is becoming now that life insurance companies have re-entered the market, Mudd says. "They are back and they are making loans." The sweet spot is between 55% to 65% LTVs but some are willing to go a little higher, he says.
While there is evidence of life interest in most real estate asset classes, "they love multifamily," Mudd says. "But then again the agencies love multifamily too." Insurance companies are starting to compete with the agencies, but in most cases, he says, "they are not quite there yet."
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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.
