Berkadia arranges $58 million construction loan for apartments
Berkadia has arranged a $58 million loan for Abberly Averra Apartments, a 336-unit, multifamily construction project located west of Manassas.
Managing Director David Blake and Senior Director Steve Murden of the Richmond office secured the HUD insured loan on behalf of University Village Holdings LLC, a joint venture between the community’s master planner, The Rector Cos, and the HHHunt Corp., a Virginia-based real estate development company. HHHunt is overseeing the construction and development of the apartments. The deal closed on March 17.
“With unit and project amenities including a vibrant clubhouse with a fitness center, a cyber café and an outdoor swimming pool, this property will have all of the qualities of newer apartments in Prince William County at a more competitive rental rate,” Murden said in a statement.
The non-recourse loan is structured at 85 percent of the total replacement cost with a fixed rate of 3.9 percent for both the 24-month construction phase and the 40-year amortization term.
The developer plans to begin leasing the units in mid-2018 and to complete construction by early 2019. The project design has been qualified as green/energy efficient, and the mortgage insurance was reduced to 25 basis points for the life of the loan.
“This loan closing is the largest in HHHunt’s more than 50-year history and is our first construction loan of 2017,” said David Hubble, HHHunt’s vice president of finance for the properties division.