FORESTVILLE, MD-The Donaldson Group and private equity firm Angelo, Gordon & Co. have secured construction and acquisition financing for a recent value add multifamily acquisition they made here.

The property is Regency Pointe, a 599-unit apartment complex that they acquired for $20 million in cash. Plans call for an additional $16 million in renovations. The property, which suffered a fire, came into the Donaldson-Angelo, Gordon fold with a 65% occupancy rate.

"We received between 12 to 15 lender quotes, and then we quickly narrowed them down to three," Carlton Einsel, EVP with the Donaldson Group, tells GlobeSt.com. Wells Fargo landed the deal with its offer of non-recourse financing and a competitive spread over Libor. Einsel declined to say what that spread was other than it was inside 300 basis points. It is a floating rate transaction with a three-to-five year term, he adds. 

Maury Zanoff and Matthew Williams at CB Richard Ellis Capital Markets represented the partnership in sourcing the debt. They worked with Katherine Reid and Andrew Lucas of Wells Fargo.

The Donaldson Group has begun the $16 million capital improvement program for Regency Pointe, starting with full renovation of 77 units damaged by the fire. The property is located at 3253 Walters Lane, two miles from the Suitland Federal Center and four miles from the Joint Base Andrews Naval Air Facility. Tenant interest in the property is growing, Einsel says, with the property’s occupancy rate now closing in on 80%.