Tower Companies Secures $188M Refi for Silver Spring Multifamily Campus

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PGIM Real Estate has provided $188 million in 10-year fixed-rate financing to Tower Companies to refinance The Blairs, a five-property multifamily portfolio in Silver Spring, Md.

The five properties — The Pearl, Blair Towns, Blair House, Blair East and Blair Plaza — are part of the master-planned campus and total 1,396 units.

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Tower Companies founder Albert Abramson acquired the 27-acre site in 1956 from descendants of Montgomery Blair and began a decades-long development process that culminated into what is now known as The Blairs, according to the company’s website.

“Multifamily continues to perform as an asset class given the inherent demand for housing,” Trevor Arnholt, vice president at PGIM Real Estate, told Commercial Observer. “With rising costs of home ownership, we see demand across all sectors of housing, with a particular strength in housing that is affordable to middle-income renters that will translate into high occupancies and resilient rents.”

The first three apartment buildings at The Blairs were completed between 1961 and 1967, Blair Towns was added in 2002, and The Pearl was developed in 2017.

In 2012, The Blairs became the first multifamily campus in the U.S. to receive the LEED Gold certification for operations and maintenance.

“Maryland is where we call home, and The Blairs is one of our many communities where we aim to provide residents a more sustainable and greener lifestyle,” Ronald Abramson, partner at Tower Companies, said in a statement. “Having the ability to reinvest in our buildings allows us to remain focused on creating environmentally friendly spaces that people can call home.”

The family-owned Tower Companies manages more than 6 million square feet in the Washington, D.C., metropolitan area consisting of office buildings, shopping centers, lifestyle centers, hotels and multifamily, with an additional 10 million square feet of developable land.

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