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BALTIMORE-Refinancing to the tune of $360 million has closed for a 10-property multifamily portfolio located in the Baltimore area and suburban Maryland. The unnamed borrower counts Lubert-Adler Funds at its principal investor.

Potomac Realty Capital LLC put the deal together from start to finish, structuring and providing the funding for the loan, which carries a 5.22% fixed-interest rate; although, $20 million of the financing is in the form of a mezzanine loan with a floating rate. “Our company devised a way of providing maximum proceeds to the borrower inclusive of a mezzanine loan that contained a renovation reserve feature intended to provide for value enhancement improvements to the properties,” says Potomac president and CEO Dan Palmier. “We structured, underwrote and rate-locked this complicated financing in approximately 30 days.”

Situated in submarkets surrounding Baltimore, the Baltimore County City of Essex and the City of Hyattsville in Prince George’s County, the 10 rental communities offer both garden-style and townhouse residences and account for an aggregate 5,500 units. And together, the complexes boast an average occupancy level of 95%; a figure that Potomac Realty attributes to the renovation programs the borrower instituted at all the properties over the last few years.

“We look past the numbers to see the intrinsic value of the deal,” Palmier adds. Just one-year-old, Needham, MA-headquartered Potomac has already orchestrated and funded more than $500 million in commercial mortgage loans.

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