RICHMOND, Va. and WASHINGTON D.C. – May 8, 2020 – Berkadia today announced the financing secured for Ravensworth Towers, a high-rise multifamily property in Annandale, Virginia. Director Jonathan Pratt and Associate Director Rossana Bouchaya of Berkadia’s D.C. Metro office, along with Senior Managing Director John Reed of Berkadia’s Richmond, Virginia office secured $45.5 million in acquisition financing for the property on behalf of the borrower, Virginia-based Insight Property Group. The deal closed on May 7.
The 10-year Freddie Mac loan features an adjustable interest rate, a 75 percent loan-to-value ratio and a substantial interest-only period.
“This deal was an excellent execution during COVID-19 because the debt was priced prior to the volatility in the bond markets. Freddie Mac stood by the transaction and actively worked with our team to make sure the deal stayed on track” said Pratt.
Located at 4327 Ravensworth Road, Ravensworth Towers features one- and two-bedroom floor plans. Community amenities include a fitness center, a swimming pool, a clubhouse and barbeque areas. Residents are afforded convenient access to Highway 495, Hidden Oaks Nature Center and the shops and restaurants along Little River Turnpike.
Both occupancy rates and rental growth at Ravensworth have consistently beaten the market in recent years. With no recent supply produced, and little in the pipeline, these trends are expected to continue. Insight Property Group, along with partners Rock Creek Property Group and ELV Associates, plan to invest three to four million dollars into the property in the next few years. Total project costs will approximate $63,000,000. The new owner has hired Bell Partners to manage the asset.
“This deal had a complex organizational structure that required creative solutions to comply with lender regulations,” said Bouchaya.
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