Potomac To Take 1,000 Units with $20M Loan

NEEDHAM, MA-Needham, MA-based Potomac Realty Capital LLC is closing on a $20-million bridge loan to acquire and renovate a portfolio of seven military housing communities. The class B buildings will be renovated and converted into 1,000 multifamily units.

The seven buildings were previously built in conjunction with the military, which then held the property under an 801C, which is a program where the US military holds a master lease on all the apartment buildings around a military base–in this case Fort Drum. The property taxes are deferred for 20 years when the 801C expires, after which the space reverts back to the original builders.