(To read more on the multifamily market, click here.)

COLLEGE PARK, MD-To pay off debt, Seven Springs Investments secured financing to the tune of $98 million on Seven Springs, a 27-stucture apartment compound with 983 residential units. The borrower used the loan to pay off a Fannie Mae first and second note on the property.

GMAC Commercial Mortgage Corp. vice president Marvin Hill orchestrated the funding package, having supplied borrower Seven Springs with a permanent fixed-rate loan through GMACCM Proprietary Lending Group. "We offered the highest amount of leverage on the property at a competitive spread," Hill says. "Refinancing made great economic sense for the borrower as it allowed them to capture all of its investment in major capital improvements done on the property."

Ross Development & Investment created Seven Springs Investments as a joint venture with GMACCM to acquire the multifamily community from Lavalle Property Associates three years ago in a $90-million transaction. The residential units are spread out among 27 structures; 250 apartments are located in 24 garden-style structures, while a 12-story tower offers 307 units. Two mid-size structures hold the remaining 426 residences. The 33-acre site also features a business center, clubhouse, fitness facility, tennis courts and a swimming pool.

Despite the frenzy of new condominium development, demand for apartments is still relatively strong in Prince George's County. According to Delta Associates' Mid-Year 2005 Apartment & Condominium Report, the average vacancy rate for investment grade, class B garden-style properties is 3.8% and the figure is 1.4% for class A properties.