Acres Lends $84M for Planned Multifamily Development in Frederick, Md.

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The Goldstar Group received an $83.7 million loan for the construction of Residences at East Church, an apartment complex being developed in Frederick, Md., Commercial Observer has learned.

Acres Capital Corp. originated the loan. Further loan details were not revealed.

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“As home to one of the largest clusters of bioscience companies in Maryland, Frederick County has become a leading biotech and life sciences community,” Mark Fogel, Acres’ CEO and president, said in a statement. “This county-wide employment growth, coupled with other area demand drivers, fuels the need for quality housing options like the Residences at East Church.”  

Bethesda, Md.-based Goldstar Group acquired the 14.81-acre vacant lot, located at 605 East Church Street, in 2020 for a price believed to be around $5 million. The parcel was previously owned by Frederick Health Hospital.

“This is one of the last infill parcels in Frederick and bridges the single-family and retail to the vibrant downtown area,” Michael Brodsky, the Goldstar Group’s CEO, told Commercial Observer at the time of the acquisition. “Goldstar continues to look for value in areas that are rising economically. Frederick meets that threshold and will continue to be a great affordable option for those families looking for affordable housing working in the Baltimore and D.C. regions.” 

Goldstar will develop five four-story multifamily buildings consisting of 350 units and 525 parking spaces. Community amenities will include a clubhouse, a swimming pool and a fitness center.

The loan was arranged by Jamie Butler of Walker & Dunlop. Drew Miller of Acres’ New York office originated the loan. 

The property is slated to be completed in 2024.

Keith Loria can be reached at Kloria@commercialobserver.com.