$27M Takes VA Multifamily

FALLS CHURCH, VA-Kettler has sold a local apartment building called Fields at Westover. The 305-unit complex traded for $26.7 million to Silverwood Cos. Jeff Kunitz, with Marcus & Millichap’s Tax Credit Group in Seattle, along with colleagues Robert Sheppard, Armand Tiberio, Spencer Hurst structured the deal, assisted by locally-based David Weber. Financing was provided by the Virginia Housing Development Authority.

The complex had an existing VHDA loan “so it made sense for the authority to reissue a new loan for the sale,” Webber tells GlobeSt.com. The property traded at a market rate, he adds, with the occupancy rate somewhere in the mid-90% range

This trade is the latest example of VHDA’s stepped-up support–at least anecdotally–of multifamily sales in Virginia that have an affordable housing component. Ellicott City, MD-based Orchard Development financed its $15.5-million purchase of the Chesapeake, a 184-unit garden-style rental community in Dumfries, VA, last month using Low Income Housing Tax Credits offered by authority as well as a bond issuance.

In October Foulger-Pratt Cos. closed on a $26-million acquisition of an affordable housing apartment community in Alexandria, VA called The Fields at Landmark, for $26 million using VHDA. It was among the first to be supported by the authority’s new program aimed at property owners that already have VHDA debt on the buildings. The point is to facilitate the sale or refinancing so the apartment building can still stay affordable. Marcus & Millichap brokered The Fields and Landmark deal as well.