WASHINGTON, DC-Financial transactions continues to stack up in the DC area--a welcome sign that the capital and lending markets are starting to regain their equilibrium. Two recent mid-sized deals illustrate that point.
In one, Walker & Dunlop provided a $31.8-million acquisition loan for Hanover Apartments located in Greenbelt, MD. The loan was structured with a 10-year term with two years interest only and a 30-year amortization. The loan was underwritten to an 80% LYB with a 1.25x minimum debt-service coverage ratio. The borrower was an affiliate of Harbor Group International.
Freddie Mac provided the financing for the complex, which underwent a $8.5-million renovation in 2007. It was 95.6% leased at closing. Stephen Farnsworth, senior vice president, multifamily finance, originated the loan and led the Walker & Dunlop team.
The other transaction is a $31.8-million, five-year floating-rate loan for 801 N. Capitol St., NW that Cassidy Turley’s John Campanella arranged on behalf of Brookfield Real Estate Opportunity Fund. The asset is a 87,883-square-foot office building located in the North Capitol Hill submarket. The property is fully leased to the University of the District of Columbia.
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