BETHESDA, MD - Seven Springs Village Apartments in College Park, Maryland has been recapitalized, announced ROSS Development & Investment (RDI), an affiliate of the ROSS Companies. AREA Property Partners invested in the recapitalization, which was in excess of $100 million. ROSS successfully negotiated a modification and extension of the community's existing, fully-performing securitized mortgage debt that was set to mature on September 1, 2010. For over a year, RDI's founder and principal, Scott Ross, navigated a solution to gain control of the property by acquiring the interest of a partner and then partnered with AREA Property Partners to pay off the existing loan with a new Freddie Mac recapitalization.
Source: ROSS Development & Investment
"Obtaining equity funding through private sources and bringing a new investment partner to the transaction was challenging in this economy. Changes in mortgage underwriting and regulations have created stumbling blocks for many owners, but based on the outstanding established performance of this community, we were able to achieve this recapitalization," says Ross.
"Seven Springs Village presented an attractive opportunity to invest in a stable asset with strong cash flow. It offers a convenient location inside the Beltway and is fully leased," said Richard Mack, AREA North America chief executive officer.
Part of the recapitalization plan is to renovate the apartments and enhance the common areas of Seven Springs Village. The ROSS Companies are also focused on the additional development opportunities at this community.
"This property is in an ideal location," says Ross. "We are committed to maximizing the value of the asset in every way possible."
Located inside the Beltway in College Park, Maryland, Seven Springs Village is a 982-unit apartment community comprised of both mid-rise and garden style buildings. Metrobus and the University of Maryland shuttle busses have stops within the community that provide access to two Metrorail stations and the University of Maryland, making it a sought after place to live.
ROSS Companies, founded in 1983 in Bethesda, MD is a recognized leader in apartment acquisitions and investment, development, property management and renovation in the Washington, DC metro area. With more than 11,000 apartment homes in its portfolio, the company is one of the most active multifamily real estate firms in the Mid-Atlantic region. ROSS Companies is comprised of three affiliates – ROSS Development & Investment, Realty Management Services, Inc. and RR Renovation & Construction, LLC. Portfolio growth is achieved through the selective acquisition of communities and extensive due diligence to identify value creation opportunities. ROSS Companies is committed to providing quality living and exceptional service to its residents. As of January 1, 2011, the ROSS Companies' manages 33 communities in and around the Washington, DC metro area.
AREA Property Partners, formerly known as Apollo Real Estate Advisors, is a leading international real estate investor and fund manager on behalf of prominent government and corporate pension funds, sovereign wealth funds, insurance companies, foundations, endowments, and high net worth individuals. Since the firm's founding in 1993, AREA Property Partners has overseen the establishment of multiple real estate funds and joint ventures totaling $13 billion in equity commitments for investments in the United States and globally. Its funds have collectively invested in over 500 transactions with an aggregated value in excess of $60 billion. The firm has offices in New York, Atlanta, Los Angeles, San Francisco, London, Paris, Luxembourg and Mumbai.