$360M Financing Closes for Apartment Portfolio

(To read more on the debt and equity markets, click here.)

BALTIMORE-Refinancing to the tune of $360 million has closed for a 10-property multifamily portfolio located in the Baltimore area and suburban Maryland. The unnamed borrower counts Lubert-Adler Funds at its principal investor.

Potomac Realty Capital LLC put the deal together from start to finish, structuring and providing the funding for the loan, which carries a 5.22% fixed-interest rate; although, $20 million of the financing is in the form of a mezzanine loan with a floating rate. “Our company devised a way of providing maximum proceeds to the borrower inclusive of a mezzanine loan that contained a renovation reserve feature intended to provide for value enhancement improvements to the properties,” says Potomac president and CEO Dan Palmier. “We structured, underwrote and rate-locked this complicated financing in approximately 30 days.”