WASHINGTON, DC-Federal Capital Partners has secured refinancing for a multifamily property that it acquired in 2009 in foreclosure: the Allegro Apartments, located in the District’s Columbia Heights submarket. The refinancing was provided by the New York office of Aareal Capital Corp.
The new $80.5 million loan replaces the initial financing the company secured in 2009. It has a five-year term and will provide FCP with a “significant realization” for its investors, says FCP senior vice president Steve Walsh in a prepared statement. Mark Remington of HFF represented FCP in the transaction.
“These refinancing proceeds provided FCP with a significant realization for its Fund I investors,” he said. “The Allegro is a well-constructed, well-conceived luxury apartment community in one of DC’s hottest urban submarkets. The interest we received for the refinancing transaction reflects the quality of the investment and its strong market presence.”
The Allegro fits in with FCP’s investment approach sweet spot: multifamily properties acquired at a discount--significant at times--to replacement costs. The company is presumably in fund-raising mode for a new $500-million equity fund it intends to launch. FCP filed the necessary paperwork with the Securities and Exchange Commission this spring and has declined to discuss its details in earlier interviews with GlobeSt.com. The fund, called FCP Realty Fund II, had commitments of $122.5 million from at least seven investors several weeks ago. The goal is to raise another $377.5 million from investors, according to managing partner Esko Korhonen.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
