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SILVER SPRING, MD-Ownership of the Berkshire Towers apartment community has changed hands in a deal between seller Berkshire Realty Holdings LP and buyer Stellar Management. Ackman-Ziff Real Estate Group helped arrange the $146 million financing package in the form of a five-year interim loan for the 1,119-unit multifamily property; $110 million in first mortgage debt and $36 million in joint venture equity.

The transaction was hardly a one-man show. “It was a group effort between Stellar, Ackman-Ziff, our attorneys Robert Ivanhoe and Stephen Rabinowitz of Greenberg Traurig, the lenders, and our financial partners,” Stellar’s Robert Rosania says in a comment to GlobeSt.com.

Located off the Capital Beltway at 11215 Oak Leaf Dr., Berkshire Towers is a 19-story high-rise structure situated on a 26-acre parcel of land. The property, which began to rise from the ground in 1965 and underwent a complete remodeling in 1997, boasts a total building area of more than one million sf. It has been seven years since Berkshire Towers was on the market. Berkshire Realty Holdings acquired the building in 1996 for $53 million from Turtle Creek Associates, which had held the property in its real estate portfolio since 1979.

Putting the financial package together was no piece of cake. “It wasn’t easy,” Ackman-Ziff’s Patrick Hanlon tells GlobeSt.com. “It is a really big property and we were operating in what was essentially a wartime environment. So, it was difficult geopolitically; we were working with lenders from three different countries.”

Some of the funds Ackman-Ziff secured on Stellar’s behalf will be directed toward remodeling activity. “We’re going to spend $25 million renovating this property to elevate it to a class A level,” Rosania says. For Stellar, the deal marks the New York-based firm’s first foray into the Metropolitan Washington, DC region’s multifamily market.

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