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WASHINGTON, DC-Local developer Donatelli & Klein has refinanced the 190-unit Ellington Apartments in the city's U Street Corridor.
A spokeswoman at CharterMac Mortgage Capital tells GlobeSt.com that the funds will be used to purchase a portion of the limited partnership interests in the 1301 U St. asset. She declined to quantify the proceeds or give further information about the partnership structure.
New York City-based CharterMac Mortgage Capital together with subsidiaries Dallas-based ARCap and American Mortgage Acceptance Co., also in New York City, provided the $57.3-million financing, which is split into senior and subordinate pieces. A $40.8-million A note was split into two pieces, both of which carried a 5.82% interest rate with a 10-year term at four years of interest-only payments and followed by a 30-year amortization. The B note for $16.5 million had a 7% interest rate with a 10% overall rate of return and interest-only payments. An investment fund sponsored by ARCap funded the A1 note while American Mortgage funded the A2 and B notes.
The class A, eight-story apartment building has 16,835 sf of retail space, which currently is 100% occupied, the spokeswoman says. The apartments are 96% occupied, with rents starting at $1,535 per month for one- and two-bedroom units ranging from 562 sf to 1,151 sf.
The Ellington transaction was the first joint transaction with ARCap, a fund manger acquired in August. "Being the first transaction between CharterMac and ARCap since the acquisition, the Ellington really demonstrated the unique synergies between the two organizations," Bryan Cullen, vice president of CharterMac Mortgage's Bethesda office, says in a press release. "Both the location of the Ellington, which is in the center of the U Street transformation, and the strength of Donatelli & Klein, enabled us to offer such a well-rounded, competitive financing package."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
