M&T Realty Provides $11M Refinancing for DC Apartment Building
M&T Realty Capital has provided a $10.6 million loan to refinance an affordable apartment building in the Fort Dupont neighborhood of Washington, D.C.
D.C.-based Kaye Stern Properties owns the 111-unit building at 336 37th Street SE, according to its website.
The financing was facilitated by Marcus & Millichap Capital Corporation (MMCC). Terms of the 10-year loan include 24 months of interest-only payments, with an interest rate of 5.67 percent, 30-year amortization and a 68 percent loan to value ratio.
“The loan allowed the client to recapitalize its existing debt into a longer term, fixed-rate product with a 24-month interest only period,” Jared Cassidy, MMCC’s first vice president, capital markets, told Commercial Observer. “Given the headwinds in today’s market, the loan delivered was aggressive.”
The building is one of seven that comprises the Fort Dupont Overlook apartment complex, located on 37th Street, near Fort Dupont Ice Rink, Kimball Playground and Fort Circle Park.
Constructed in 1954 and renovated throughout 2017 and 2018, the complex sits on a little over two acres and features a split between HAP Contract units and units governed by DC Rent Control regulations or are occupied by DC Housing Choice Voucher Program tenants.
“There was strong lender interest in the deal, especially considering the ongoing need and demand for affordable housing in D.C.,” Cassidy said. “Despite facing numerous headwinds with current volatility in the debt markets, M&T ultimately delivered the most aggressive quote to the sponsors, who have a long history of success in developing and operating affordable properties in the Washington, D.C. area.”
Keith Loria can be reached at Kloria@commercialobserver.com.