Phillips Realty Capital Facilitates $58M Financing for Maryland Apartment Development


Varsity Investment Group has closed on a $45.1 million construction loan from United Bank for the St. Joseph Apartments, a four-story, 268-unit multifamily development in Upper Marlboro, Md., Commercial Observer has learned.

Phillips Realty Capital (PRC) structured the capital stack financing, which also included a $12.75 million preferred equity investment by Chevy Chase, Md.-based FCP earlier this year. The construction loan was for three years with two options.

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“Varsity has had this land under contract for over two years, during which time, they took it through the approval process to get to where it is today,” Mark Remington, a principal at PRC, told CO. “They created a lot of value in the land, and we took advantage of the value creation and parlayed that into a very attractive financing package.” 

Marketing this during the pandemic was challenging, Remington admitted, but he noted the demand for multifamily in the area, combined with Varsity’s reputation, made this a savvy financing opportunity.

The luxury apartment community will consist of large units featuring condo-quality finishes, and offer such amenities as a fitness center, clubhouse and areas for entertaining.     

Located at 9500 Ruby Lockhart Drive, the property is nearby the popular Woodmore Town Centre and University of Maryland Capital Region Medical Center, and is within a mile of the Largo Town Center Metro Station, providing easy access to Washington, D.C.

“It’s a very high-growth submarket, basically right across the Beltway from [the Washington Football Team‘s] stadium [FedEx Field],” Remington said. “With a 10-minute walk, you can get to a bunch of restaurants and retailers, so it has everything a suburban apartment dweller will be looking for.” 

Construction on the St. Joseph Apartments is expected to begin soon with an expected completion date of June 2021.

“We are excited to be part of a new wave of development in Prince George’s County,” Donnie Gross, Varsity’s principal, said. “The St. Joseph Apartments will help fill a need for a growing population of young professionals seeking modern amenities, suburban conveniences, and easy metro access.” 

Joining Remington on the deal was PRC’s Director of Underwriting, Alec Jenkins.